3.3 Decision- making techniques

Question 1

What is a Quantitative Sales Forecast?

Answer 1

A quantitative sales forecast is a prediction of future sales based on numerical data, such as past sales figures, trends, and statistical methods

Question 2

what kind of data does Quatitative sales forecast use?

Answer 2

Historical and market analysis

Question 3

Sales forecasts froms the basis for other common parts of planning, such as:

Answer 3

Human resourses- if business predicts an increase in sales extra staff
Production and capacity planning - if business predicts a decrease in sales they may need to reduce capacity in order to manage capacity utilisation
Cashflow forecasts - forecasted sales of business have an impact on business cahsflow
Profit forecats and budgets - sales have an impact on projected profity and future budget

Question 4

Name some negatives to using a Quantsative sales forecast

Answer 4

past performnaces have no guarnatee of future sucecss