The forecast literature to date does not offer a managerial understanding of the role of forecasting in resource allocation planning and how managers can reduce the impact of forecasting errors on resource planning. This article provides practical suggestions for better understanding the limitations of forecast methodology and how to better cope with the impact of forecast error. The goal of managers is to reduce the financial impact of forecast errors. This can be accomplished by overcoming two traditional forecasting shortcomings. The forecasts must be relevant, meaning they have a stated purpose and address the client's needs. Second, the forecast must be placed in the broader