Can you name a common quantitative forecasting method?

A common quantitative forecasting method is the moving average. This technique involves calculating the average of a set of data points over a specific period, which helps smooth out fluctuations in the data and provides a clearer view of the underlying trend. By using previous data, moving averages allow organizations to make predictions about future values based on historical patterns. This method is particularly useful when the data exhibits seasonal or cyclical trends, enabling better resource planning and inventory management.

In contrast to qualitative methods like expert opinion and focus groups, which rely on subjective judgment and insights, moving averages depend purely on numerical data, thereby providing a more objective and data-driven approach to forecasting. Benchmarking, while useful in assessing performance against industry standards, does not specifically lead to forecasting future demand or trends in the same way that moving averages do.