The benefit of a better forecast usually is greater when
A) The price of the product is low in absolute terms
B) Product demand is relatively volatile
C) The cost of an error in forecasting is low
D) The cost of an error in forecasting is zero
E) The price of the product is low in relative terms

Question

Quizplus · Accepted Answer

A better forecast is more beneficial when product demand is relatively volatile because it allows for more accurate planning and inventory management, reducing the risk of stockouts or excess inventory.

The Benefit of a Better Forecast Usually Is Greater When