What is the purpose of a rolling forecast in forecasting seasonal demand?

• A. It replaces long-term forecasts
• B. It uses only last year's data
• C. It is updated regularly with new data
• D. It ignores promotions

Answer: (C)

A rolling forecast stays current by continually updating the forecast with the latest actual data and revised assumptions, extending the horizon as new periods unfold. For seasonal demand, patterns can shift due to promotions, weather, or market changes, so regularly refreshing the forecast lets you capture these changes and adjust plans accordingly. The goal is to keep projections aligned with what’s actually happening now and what’s likely to happen next, rather than relying on past data alone or sticking to a fixed plan.

This approach isn’t about replacing long-range planning, and it doesn’t rely only on last year’s data—both of these would make the forecast less responsive to current trends. It also doesn’t ignore promotions; rather, it integrates their expected impact as new information becomes available, which is essential for accurately predicting seasonal peaks and troughs.