For products subject to promotional demand, which type of forecasting factors is most useful?

When dealing with products that experience promotional demand, utilizing both quantitative and qualitative factors for forecasting is crucial. Quantitative factors include historical sales data, trends, and statistical analysis, which provide a numerical basis for expected demand. These factors help identify patterns during previous promotions or sales campaigns, allowing for more precise forecasts based on hard data.

On the other hand, qualitative factors draw on expert opinions, market research, customer feedback, and insights from marketing teams. These subjective elements are particularly significant when upcoming promotions or changes in consumer behavior may not be reflected in historical data. For example, a new marketing strategy or an anticipated shift in customer preferences could influence demand in ways that past sales records alone cannot capture.

Combining both types of forecasting factors enhances the accuracy and reliability of the forecasts for promotional demand. This holistic approach allows planners to better anticipate fluctuations caused by promotions, leading to improved inventory management and customer satisfaction.