Which of the following is a qualitative forecasting method?

Study for the Taitt Supply Chain Management Exam 1. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare thoroughly for your exam!

Multiple Choice

Which of the following is a qualitative forecasting method?

Explanation:
This item tests the distinction between qualitative and quantitative forecasting methods. The sales force composite is qualitative because it relies on judgment and subjective input from sales personnel about expected demand, often combined with management’s assessment to form a forecast. It uses expert opinion rather than numerical data and mathematical models. In contrast, the other options are quantitative methods that depend on historical numerical data and formulas: time-series analysis looks at past data to identify patterns and project them forward; a moving average averages recent observations to smooth and forecast; exponential smoothing weights past data to forecast future values. These require numerical inputs and calculations, not subjective judgments.

This item tests the distinction between qualitative and quantitative forecasting methods. The sales force composite is qualitative because it relies on judgment and subjective input from sales personnel about expected demand, often combined with management’s assessment to form a forecast. It uses expert opinion rather than numerical data and mathematical models.

In contrast, the other options are quantitative methods that depend on historical numerical data and formulas: time-series analysis looks at past data to identify patterns and project them forward; a moving average averages recent observations to smooth and forecast; exponential smoothing weights past data to forecast future values. These require numerical inputs and calculations, not subjective judgments.

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