The demand for large, family-sized vehicles will slump dramatically

Official Explanation

Argument construction

In the next decade, the demand for a certain type of car will go down. Companies generally order steel plating 5 years in advance to get the maximum discount from suppliers. It follows that the companies would have ordered steel plating for this type of car 5 years in advance when these types of cars had consistent demand. Now, after the companies learnt that the demand for this car type will go down, they want to postpone the orders for steel plating.

Predict an Evaluator

The major automobile companies tread cautiously. They anticipate that if the demand for the large, family-sized vehicles slumps to such an extent that they have to stop making these types of vehicles, then the pre-ordered steel plating would go waste and become a liability for them. However, if the demand for these types of vehicles does not slump to the extent that they have to stop making these types of vehicles, they may then, at that point in time, order the required amount of steel plating, though they will not get the hefty discount they would have got with an order made 5-years in advance. This seems to be the most rational decision.

Before postponing the orders, the major automobile companies must evaluate that if they would need steel plating in future, its supply will remain consistent and also, that its price is not likely to rise significantly higher than the present rates.

Predictive evaluator 1: Is the availability and the supply of steel plating likely to be consistent in the future?

Predictive evaluator 2: Will the price of steel plating rise significantly in future?