The forecasting error that can occur is that the
A)actual demand is greater than the forecast.
B)actual demand is less than the forecast.
C)both a and b
D)neither a nor b

Question

Quizplus · Accepted Answer

The forecasting error can occur in both cases, when the actual demand is greater than the forecast and when it is less than the forecast. If the actual demand is greater than the forecast, there can be supply shortages and lost sales, which can lead to dissatisfied customers. On the other hand, if the actual demand is less than the forecast, there can be excess inventory, which can lead to extra costs for storage and spoilage. It is important for businesses to manage forecasting errors and adjust their inventory levels accordingly.

The Forecasting Error That Can Occur Is That the