Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a:
A) short-range time horizon.
B) medium-range time horizon.
C) long-range time horizon.
D) naive method, because there is no data history.
E) trend extrapolation.

Question

Quizplus · Accepted Answer

Long-range time horizon is typically used for new product planning, capital expenditures, facility location or expansion, and R&D as they require a projection of future demand and market trends beyond the near future. Short-range time horizons are typically used for operational planning, while medium-range time horizons are used for tactical planning. Naive method is generally used for simple forecasting when there is no data history. Trend extrapolation is a forecasting method that involves extending past trends into the future, but it may not be suitable for all scenarios as historical trends may not always accurately predict future trends.

Forecasts Used for New Product Planning, Capital Expenditures, Facility Location