Question

Question: This is a type of forecast used to make long-term decisions, such as where to locate a warehouse or how many employees to have in a plant next year?

Short answer

Answer

Strategic forecast is a type of forecast that is used to make long-term decisions.

Step-by-step solution

Definition of forecasting

Step 1: Definition of forecasting

Forecastingmay well be a method of using past data as a source to form informed estimates that are predictive in determining the direction of future changes. Businesses utilize forecasting to determine the thanks to allocating their budgets or plan for anticipated expenses for an upcoming period of their time. Forecasting is the process of predicting demand, supply, and pricing within an industry.

Strategic Forecasting

Step 2: Strategic Forecasting

Strategic forecasts are the long-term forecasts, like where to locate a warehouse or the number of employees to own in an exceeding plant next year. These forecasts are used for decisions associated with strategy and aggregate demand. Some forecasts are for very high-level demand analysis.