Which of the following are subjective forecasting techniques? Select TWO that apply.

Subjective (or qualitative) forecasting techniques rely on human judgment, expert opinion, intuition, and qualitative data rather than historical mathematical data. The Delphi method uses a structured, panel-based consensus process where experts independently provide forecasts over multiple rounds to arrive at a reliable prediction. Test marketing involves launching a product in a limited geographic region or customer segment to gather qualitative consumer feedback and gauge demand before a full-scale rollout. Both techniques do not depend on statistical historical algorithms, making them subjective methods ideal for new products or uncertain market conditions. In contrast, quantitative methods rely on numerical data, while inventory management procedures serve operational tracking rather than demand forecasting.

Option C: Cycle counting is an inventory auditing method where small subsets of inventory are counted on specific days, not a demand forecasting technique.
Option D: Pareto principle (80/20 rule) is an inventory categorization tool used to prioritize stock control (ABC analysis), not a forecasting technique.
Option E: Weighted moving average is a quantitative forecasting technique that assigns numerical weights to historical time-series data to predict future demand.

1. CIPS Study Guide: L4M7 Whole Life Asset Management, Chapter 1, Section 1.2 "Demand Forecasting Techniques", pp. 18-24.

2. Mentzer, J.T. and Moon, M.A. (2005) Sales Forecasting Management: A Demand Management Approach, SAGE Publications, Chapter 4, pp. 65-88. https://doi.org/10.4135/9781452231648

3. MIT OpenCourseWare, 1.272J Supply Chain Planning, Module 3: "Demand Forecasting Methods and Qualitative Judgment".