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) strategic forecast.

Question

Quizplus · Accepted Answer

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically require a long-range time horizon. This is because these decisions have long-term implications and require a forecast that considers future trends and changes in the market, economy, and technology. A short-range or medium-range forecast may not provide a sufficient basis for such decisions. The naive method is not appropriate for these decisions as it does not consider any data history or future trends. A strategic forecast may be used for these decisions but it is not a distinct type of forecast and may fall within the realm of a long-range forecast.

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