Demand Forecasting Best Practices

16 Judgmental forecasting

In chapters 14 and 15, we discussed how forecasting models work. Forecasting engines will populate a forecast baseline, but this is not the end of your forecasting process. As illustrated in figure 16.1, different teams can still enrich the forecast using various insights and sources of information. Because they rely on human judgment, these adjustments are called judgmental forecasts.

Figure 16.1 Example of a demand planning process

As we will discuss in this chapter, judgmental forecasts come with risks and pitfalls. ...