Many times organizations create forecasts independent of resource allocation decisions. This occurs when the final forecast is developed in one functional area and then distributed throughout the organization. Top management approves this forecast, but it is not integrated into resource plans until later. Those who create the forecast should consider how the forecast is to be used by other functions to reduce the adverse effects of forecast inaccuracy.
One method to reduce the forecast's adverse effects is to associate specific time frames with specific resource decisions. Each organization has a different chronological time period for making resource decisions and the forecast and planning horizons should relate to these decision time periods to match
decision making with forecasting.