Discuss the advantages and disadvantages of using executive judgment in

Discuss the advantages and disadvantages of using

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13. Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.ANSWER: Executive judgment is the intuition of one or more executives. This is an unscientific but expedient and inexpensive approach to sales forecasting. It is not a very accurate method, butexecutive judgment may work reasonably well when product demand is relatively stable and the forecaster has years of market-related experience. However, because intuition is heavily influenced by recent experience, the forecast may weight recent sales booms or slumps excessively. Another drawback to intuition is that the forecaster has only past experience as a guide for deciding where to go in the future.POINTS: 1DIFFICULTY: ModerateLEARNING OBJECTIVES: MARK.PRID.16.06.08 - LO: 06-08NATIONAL STANDARDS: United States - BUSPROG: AnalyticSTATE STANDARDS: United States - AK - DISC: StrategyTOPICS: A-Head: Developing Sales ForecastsKEYWORDS: Bloom's: Knowledge14. Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?
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