3.3.1 Quantiative Sales Forecasting

Question 1

QSF

Answer 1

Predicitng future sales by looking at numerical data of past sales of a busi
Use of historic data to produce sales figures

Pas sit will likely happen again
BUSI can use data to put a time series analysis together
To estimate what might happen in future

Question 2

Ads

Answer 2

Structure for busi
Make predictions - demand
Make quick decisions

Question 3

Disads

Answer 3

Depends on qualities
Volatile changes in market or economy
Unreliable data
External shocks (covid/tariffs)

Question 4

Time series analysis

Answer 4

Data can be erratic
Needs smoothing out
Allows clear trends to be identified

Question 5

Sales forecasting

Answer 5

Ads
Good future budgeting
Help to reduce waste
Quick + cheap
Make predictions on demand

Disads
Reduce risk
Long term predictions
More uncertainty’s
Fluctuating variables

Question 6

3 month moving average e.g steps

Answer 6

Add first 3 months, then divide by 3