Demand forecasting refers to the strategies employed by the business to project future demand. Forecasting is an important element in demand management because it is very helpful in businesses during make-to-stock and make-to-order situations. There are three basic types of demand forecasting models: judgmental, time series, and cause and effect. The three types of demand forecasting are used differently depending on the availability of data, past demand and related factors of demand (Alvarado-Valencia et al., 2017) . Therefore, the aim of the paper is to share an experience with judgmental forecasting and its resulting impact on business.
Judgmental forecasting is applied in situations where the business does not have adequate data due to the introduction of new products in the market. The techniques, which I employed during judgmental forecasting, are analogy and surveys. I realized that judgmental forecasting is also very effective during the following instances: when there are new and unique market conditions and when a new competitor enters the market (Alvarado-Valencia et al., 2017) . Within a business, some situations might occur when the available data is incomplete thus requiring application of judgmental forecast. I noticed that costs in terms of time and money, a situation at hand and accuracy of various forecasting techniques were factors that would influence a business to utilize judgmental forecast (Alvarado-Valencia et al., 2017) .
Delegate your assignment to our experts and they will do the rest.
In my business, judgmental forecasting is very significant since it employs human experiences to predict future business needs and thus helping in cutting down expenditures. Through judgmental forecast, I was able to know whether the business is growing or not. When the business is not doing well, then action can be taken to improve its performance (Alvarado-Valencia et al., 2017) . The technique can be accurate when the owner of the business applies correct input to make a decision. Through judgmental technique, I was able to take control of most functions of the business by recognizing the general rules of thumb that other staff can apply (Alvarado-Valencia et al., 2017) .
References
Alvarado-Valencia, J., Barrero, L. H., Önkal, D., & Dennerlein, J. T. (2017). Expertise, credibility of system forecasts and integration methods in judgmental demand forecasting. International Journal of Forecasting , 33 (1), 298-313.
