Certified Supply Chain Professional (CSCP) Practice Exam

What does judgemental judgement rely on?

1. Mathematical models and statistics

2. Historical price data and sales trends

3. Knowledge of goods, customers, and past forecasting results

4. Market trends and competitive analysis

The correct answer is: Knowledge of goods, customers, and past forecasting results

Judgemental judgement relies on an understanding of goods, customers, and past forecasting results. This approach emphasizes qualitative assessments made by individuals who have experience and expertise in the relevant area. These experts draw upon their intuition and personal knowledge, informed by their familiarity with the market, the characteristics of the products, and the behavior of customers. This methodology is particularly valuable in situations where there is limited historical data or when forecasting future trends based on subjective insights is necessary. Judgemental methods can enhance forecasting accuracy by integrating insights that data alone may not capture, such as changes in consumer behavior or emerging market trends. The other options, while relevant in various contexts, largely focus on quantitative analyses or general market observations, which do not capture the nuanced understanding that comes from direct experience and professional judgment.