Managerial Judgment : Best as an Input to the Statistical Forecasting Process

Rob Dhuyvetter shares his ideas and experience at the J.R. Simplot Company on the combining of statistical and judgmental forecasts. His main recommendation: rather than limit the use of managerial judgment to the adjustment of the outputs of statistical forecasting models, bring managerial judgment directly into the development of the statistical forecasting model. A key in doing this is timely communication with sales and marketing, and full documentation by sales and marketing of those assumptions they present to the forecasters and planners