Certified Supply Chain Professional (CSCP) Practice Exam

Which forecasting method uses numerical data to predict future demand?

1. Qualitative

2. Quantitative

3. Both qualitative and quantitative

4. Behavioral

The correct answer is: Quantitative

The correct answer is quantitative forecasting because this method specifically relies on numerical data to analyze past trends and make predictions about future demand. Quantitative forecasting techniques include time series analysis, statistical models, and regression analysis, all of which utilize historical data to identify patterns and help forecast future outcomes. This approach is particularly valuable in supply chain management as it can provide a more objective basis for decision-making and demand planning. On the other hand, qualitative forecasting involves subjective judgment and opinion rather than numerical data. It may rely on expert opinions, market research, or focus groups to make predictions, which can be valuable in certain situations but does not leverage historical data in the same way. The option that states both qualitative and quantitative suggests an integrated approach, but the question specifically asks about the method that uses numerical data, which is distinctly quantitative. Behavioral forecasting generally refers to understanding consumer behavior and preferences, rather than directly predicting demand through numerical analysis.