3.3.1 Quantitative sales forecasting

Question 1

What is Sales forecasting?

Answer 1

Sales forecasting is the process of predicting future sales levels by volume or value and future trends

Question 2

What is Sales forecasting used for?

Answer 2

Inform resource management about inventory levels, production output and logistics
Inform cash flows and budgets
Aid workforce planning

Question 3

What is a Time-series analysis?

Answer 3

shows past sales figures in date order

used to idenftify trends

Question 4

What does a Moving average show?

Answer 4

Shows whether a trend is significant by smoothing out fluctuations in data

Question 5

Is Extrapolation good?

Answer 5

Only if the market is stable

Unexpected events can make it worng