Sales forecasting for strategic resource planning
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 September 2002
Abstract
The purpose of this article is twofold. First, the article examines how managers can make more effective use of sales forecasts for strategic resource allocation decisions. Second, the article identifies those research issues in forecasting that must be addressed to better understand the managerial side of forecasting. Managers can improve resource planning by understanding the limitations of forecasts. These limitations are exemplified through several strategic forecasting paradoxes that managers must recognize. The paradoxes suggested here are: first, the most important managerial decisions a company can make are based on the least accurate forecasts; second, the most useful forecast information for resource planning is the least accurate; and, third, the organizations that need the most accurate forecast have the largest forecast error. By recognizing these paradoxes managers can devote their attention to improving the use and implementation of the forecast for better resource decisions. At the same time, future research should focus on broadening the understanding of the role of forecasts in strategic decision making.
Keywords
Citation
Wacker, J.G. and Lummus, R.R. (2002), "Sales forecasting for strategic resource planning", International Journal of Operations & Production Management, Vol. 22 No. 9, pp. 1014-1031. https://doi.org/10.1108/01443570210440519
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited