Technical and management notes: Forecasting and decision making

Forecasting is a very important tool that can aid management in its decision-making process. Many managers have no confidence whatsoever in forecasts, while others, thinking them to be infallible, may depend too much on them. This note attempts to describe and explain the complexities of the interaction between forecasting and the management decision-making process. Some generalized concepts on evolution are discussed, and the limitations of forecasts pointed out. Suggestions are also made about the evaluation of forecasts, where they should be used, and how they may be used so as to maximize their benefits.