5- When a forecast is too high in a company, it means that the company has allocated more resources which makes the company suffer. How would you classify a situation? a. High inventory cost b. High quality product c. High dissatisfaction from customers d. High employee turnover

5- When a forecast is too high in a company, it means that the company has allocated more resources which makes the company suffer. How would you classify a situation? a. High inventory cost b. High quality product c. High dissatisfaction from customers d. High employee turnover

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 17DRQ: Under what conditions might a firm use multiple forecasting methods?

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Concept explainers

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.

Question

When a forecast is too high in a company, it means that the company has allocated more resources which makes the company suffer. How would you classify a situation?

High inventory cost

High quality product

High dissatisfaction from customers

High employee turnover

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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