Demand Forecasting Quiz

What is the purpose of demand forecasting?

• To analyze current demand for a product

• To predict future demand for a product

• To compare demand across different products

• To estimate past demand for a product

Why is demand forecasting important for businesses?

• To increase carrying costs

• To reduce resource allocation

• To optimize operations and minimize costs

• To minimize profitability

Which method of demand forecasting involves gathering expert opinions or conducting surveys?

• Qualitative methods

• Time-series analysis

• Quantitative methods

• Causal/econometric models

What are the challenges of demand forecasting?

• Unforeseen events like natural disasters

• Seasonality and trends

• Changing consumer preferences

• Predicting future demand accurately

How can businesses improve their demand forecasting accuracy?

• By incorporating feedback from sales teams and customers

• By ignoring market trends

• By not monitoring market trends

• By not updating forecasting models

What is the relationship between price and quantity demanded according to the law of demand?

• As price decreases, demand decreases

• As price decreases, demand increases

• As price increases, demand increases

• As price increases, demand decreases

Which factor influences demand based on the availability of substitutes?

• Substitutability

• Expectations

• Income level

• Consumer preferences

What can impact the demand for certain goods and services based on government policies?

• Government policies

• Consumer preferences

• Substitutability

• Income level

Which method of demand forecasting uses expert opinions on market forecasts?

• Trend projection

• Market research

• Sales force composite

• Delphi method

What is the goal of demand planning?

• To analyze current sales data

• To estimate future sales data

• To compare sales data across different products

• To predict past sales data