2. Demand

Forecasting Basics — Quiz

Test your understanding of forecasting basics with 5 practice questions.

Practice Questions

Question 1

A company is introducing a highly innovative product with no comparable market history. Which qualitative forecasting technique would be most effective for gathering expert opinions and achieving a consensus forecast?

Question 2

When applying the exponential smoothing method, a higher smoothing constant (alpha) implies which of the following?

Question 3

A supply chain manager is evaluating two forecasting models for a product with stable demand. Model A has a Mean Absolute Deviation (MAD) of 15 units, while Model B has a Mean Squared Error (MSE) of 300. Without converting between metrics, which statement about their accuracy is most likely true?

Question 4

Which of the following quantitative forecasting methods is most appropriate for a product exhibiting both a significant upward trend and clear seasonal fluctuations in its historical sales data?

Question 5

A company's monthly sales data for the last three months are 200, 220, and 240 units. If the company uses a 3-month weighted moving average with weights of 0.5 for the most recent month, 0.3 for the second most recent, and 0.2 for the oldest, what is the forecast for the next month?