3.3.1-Quantitative Sales Forecasting

Question 1

What’s is Quantitative Sales Forecasting (QSF)

Answer 1

QSF is a statistical technique which uses historical data to make predictions about the future

Question 2

What a business used QSF info for?

Answer 2

• Organise production
• Organise resources in the business e.g. employees, premises, raw materials
• Organise marketing to back up the sales predictions

Question 3

QSF Formula

Answer 3

Step 1) Take the first 3 months data and calculate an average

Step 2) Now leave out the first year and calculate the average for the next three years

Step 3) Now add all your calculated averages to the table

Question 4

4 Quarter Moving Average

Answer 4

• As a business manager or owner you may need to look at your sales data in terms of the 4 seasons in the year

• As your sales may fluctuate widely but you still need to schedule your production on a month by month basis you would use this technique

Question 5

4 Quarter Moving Average Formula

Answer 5

Calculate average of the 4 quarters in a year