Which forecasting horizon is most appropriate for deciding whether to build a new plant?

The short-term horizon primarily focuses on immediate operational needs and quick responses to market fluctuations. Decisions made within this brief period often lack the depth of analysis required for substantial capital investments like a new plant, which typically require more extensive planning and forecasting.

While the medium-term horizon can provide insights into upcoming trends and market conditions, it still may not capture the long-term demand growth necessary for justifying the establishment of a new plant. Investments of this nature require a broader view that extends beyond 18 months to ensure alignment with long-term strategic goals.

The very short-term horizon is focused on daily operational adjustments and immediate tactical decisions, which are insufficient for evaluating significant projects like new plant construction. This timeframe does not provide the strategic perspective necessary for understanding long-term investment outcomes.