One main factor that determines whether a quantitative model or qualitative model is a better choice is the degree of uncertainty involved in the demand forecast.

Question

Quizplus · Accepted Answer

The degree of uncertainty in demand forecast plays a significant role in deciding whether a quantitative model or qualitative model is a better fit. This is because quantitative models rely heavily on historical data and mathematical calculations, while qualitative models depend on expert opinions and subjective interpretations. When there is a high level of uncertainty, qualitative models may provide more accurate forecasts as they take into account factors such as market trends, consumer behavior, and external events that may impact demand. On the other hand, when there is low uncertainty, quantitative models may provide better forecasts as they rely on statistical analysis and mathematical formulas that can identify patterns and trends in historical data.

One Main Factor That Determines Whether a Quantitative Model or Qualitative