Answer to Question #260629 in Management for johnpaulchristian.

Question

Qualitative forecasts and causal forecasts are not particularly useful as inputs to inventory and scheduling decisions. Why is this statement true? 

Answer 1

Qualitative forecasts and causal forecasts are not particularly useful as inputs to inventory and scheduling decisions because they are both estimations based on expert judgment to provide insights into future outcomes. Qualitative forecasts are less objective and precise to rely on for inventory and scheduling decisions as they lack numerical analysis. Causal factors are unplanned and unintended contributors to an incident and must precede the effect to be recognized as causal factors and therefore cannot be incorporated into inventory and scheduling decisions.