APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 27

Under what circumstances should management generally consider utilizing qualitative forecasting techniques?

Answer options

• A. When real-time data flow is available
• B. When historic data is both clear and relatively stable
• C. When developing strategic-level forecasts
• D. When demand is dependent on bill of material (BOM) calculations

Correct answer: B

Explanation

Qualitative forecasting techniques are particularly useful when historical data is stable and reliable, as it allows for more accurate predictions based on existing trends. The other options suggest scenarios where quantitative data would be more applicable, such as real-time data flow or calculations based on BOM, which do not align with the qualitative approach.