Which type of forecasting uses mathematical models and historical data?

Quantitative forecasting is the method that relies on mathematical models and historical data to predict future trends. This approach utilizes statistical techniques and mathematical computations to analyze past performance and identify patterns that can be used to forecast future outcomes. By employing quantitative methods, businesses can leverage available data to develop forecasts that are data-driven and objective, making them suitable for a variety of applications including inventory management, sales predictions, and demand planning.

This type of forecasting is particularly effective in situations where sufficient historical data exists, allowing for the development of reliable models that can capture trends, seasonal variations, and other factors influencing demand. This contrasts with other forecasting methods that rely more on subjective judgment or expert intuition. Therefore, quantitative forecasting stands out due to its systematic approach and reliance on empirical data.