203-Sales forecasting

Question 1

What is sales forecasting?

Answer 1

predicting future demand of sales. Allowing them to predict HRM needs, financial needs, estimate the quantity and cost of purchases of raw materials as well as determining the production levels

Question 2

Factors that can affect the reliability of Sales forecasting

Answer 2

-Economic factors - such as interest and inflation rates, exchange rates and economic growth

-Consumer factors - consumer tastes can change, this can be anticipated. However, it can be unpredictable and change quickly

-Competition factors - connot control competitiors actions

Question 3

Quantitative SF methods

Answer 3

Time series analysis by calculating a 3-point moving average

Question 4

Qualitative SF methods

Answer 4

-Delphi-method
-Brainstorming
-Intuition

Question 5

Advantages and disadvatages of using intuition

Answer 5

(+)Cheap and fast
(+)No need for data gathering and market testing
(-)Unreliable
(-)Risky

Question 6

What is the delphi-method?

Answer 6

group of (industry) experts respond to several rounds of open ended questionnaires and the response is compiled and shared with the group after each round. They can respond to each others opinions until an agreement is formed about what will happen in the future.