Which statement regarding inventory forecasting is accurate?

The statement that forecasts must consider market trends and conditions is accurate because effective inventory forecasting goes beyond simply relying on historical sales data. It involves analyzing current market dynamics, consumer behaviors, seasonal variations, economic indicators, and competitive factors. By incorporating these elements, businesses can create more reliable and responsive forecasts that align with real-world conditions, ultimately helping to optimize inventory levels and meet customer demand more effectively.

Only relying on historical data without adjustments does not account for changes in the market, which can lead to inaccuracies in inventory management. Likewise, the assertion that every forecast is accurate is unrealistic, as forecasting inherently involves uncertainty and must be adjusted as new information becomes available. Ignoring inventory levels entirely would be detrimental to operations since understanding current stock is crucial for making informed forecasting decisions.