Forecast error is used for all of the following EXCEPT:
A)To monitor erratic demand observations or outliers
B)To determine when the forecasting method is no longer tracking actual demand and needs to be reset
C)To determine the capacity cushion
D)To determine parameter values that provide the most accurate forecasts

Question

Quizplus · Accepted Answer

Forecast error is not used to determine the capacity cushion. It is primarily used to monitor demand observations, evaluate the accuracy of forecasting methods, and identify when parameters need to be adjusted to improve the accuracy of forecasts.

Forecast Error Is Used for All of the Following EXCEPT