Certified Supply Chain Professional (CSCP) Practice Exam

Qualitative forecasts primarily rely on what?

1. Historical data analysis

2. Statistical models

3. Judgment and expertise

4. Market research surveys

The correct answer is: Judgment and expertise

Qualitative forecasts primarily rely on judgment and expertise. This approach to forecasting is useful in situations where historical data may be scarce or not applicable, such as when entering new markets or launching new products. Instead of analyzing numerical data or using statistical models, qualitative forecasting harnesses insights from experienced individuals, subject matter experts, or focus groups. These professionals draw on their knowledge, intuition, and understanding of market trends to make informed predictions about future demand or trends. This method is particularly valuable when dealing with ambiguous or uncertain environments, where quantitative methods may not provide reliable results. By incorporating subjective judgment, qualitative forecasts can adapt to shifts in consumer sentiment or changes in external factors that quantitative methods might miss. Overall, this approach emphasizes the importance of human insight and contextual understanding in the forecasting process.