University of Central Florida (UCF) MAR3203 Supply Chain and Operations Management Midterm Practice Exam

Question: 1 / 400

What statement is true about forecasts?

They are always accurate

They are often wrong

Forecasts, by nature, are predictions about future events based on historical data and analysis. While they are a critical tool in supply chain and operations management, it is important to recognize that they are often wrong due to the uncertainty and variability present in demand, supply, and other influencing factors. Factors such as changes in consumer behavior, economic fluctuations, unforeseen events, and inaccuracies in data can render forecasts less precise. Consequently, the acknowledgment that forecasts are frequently incorrect emphasizes the necessity of monitoring and adjusting them regularly to improve accuracy and responsiveness to changing conditions. This understanding is essential for effective supply chain planning and management, allowing businesses to remain agile and informed as new information emerges.

Get further explanation with Examzify DeepDiveBeta

They are infallible

They require no adjustments

Next Question

Report this question

Download University of Central Florida (UCF) MAR3203 Supply Chain and Operations Management Midterm Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy