The CA Hub

ACCA PM · Chapter 1 · Question 9 of 9

A supermarket chain combines loyalty card transactions, weather forecasts and local events data. Its analysis reveals that sales of barbecue products in a region rise sharply two days after a forecast of warm weather at the weekend, and it now adjusts deliveries automatically. Which statement best describes the benefit obtained?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: D) Big data analytics has identified a pattern that improves forecasting and inventory decisions

Explanation

Combining large, varied data sets can reveal relationships that conventional internal reports would not show, such as a lagged link between weather forecasts and product demand. Using this pattern to drive deliveries improves forecasting and reduces stock-outs and waste. The analysis supports rather than eliminates management judgement, and volume and velocity are still relevant because the data is large and must be processed quickly.

All 9 questions in Chapter 1Information, technologies and systems for organisational performance MCQs with answers

More Information, technologies and systems for organisational performance MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →