The Delphi Method Used for Forecasting

question 3

Multiple Choice

The Delphi method used for forecasting:

• A) obtains forecasts through a comparative analysis with a previous situation.
• B) uses measures that are believed to influence the behavior of a variable that the researcher wishes to forecast.
• C) uses a single measure that weights multiple indicators and provides a measure of overall expectation.
• D) uses a panel of experts, whose identities are typically kept confidential from one another, to respond to a sequence of questionnaires.

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Definitions:

Inventory Shortage Cost

Costs incurred from not having enough stock on hand, including lost sales, backorders, and potentially lower customer satisfaction.

Storage and Tracking

Methods and systems used for keeping track of inventory or assets and maintaining their condition over time.

Insurance and Taxes

Refers to the costs associated with insuring assets and property as well as the taxes imposed on income, property, and sales.

Restocking Costs

The expenses associated with replenishing inventory or stock.