Under what conditions might a firm use multiple forecasting methods?

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Under what conditions might a firm use multiple forecasting methods?

Under what conditions might a firm use multiple forecasting methods?

Answer & Explanation (1)

Explanation
In order to get the close estimates firms usually replace a single forecasting techniques with many forecasting techniques.The situations in which organizations utilize several forecasting approaches are as follows:

The firms that serve their customers with different products. For example, Company U. Company U deals in different product lines such as soaps, shampoo, soup, and jam. Thus, it is required to perform multiple forecasts to get detailed knowledge of each product line.
The firms that engage in serving various markets. For example, Company M. Company M caters burgers to different markets across the world. Due to differences in taste, culture, and preferences among different market segments, the company is required to perform multiple forecasts.
Verified Answer
A company is required to implement several forecasting approaches in the following situations:

If the firm deals in different product lines.
If the firm caters to various market segments.

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