Quantitative sales forecasting Flashcards
1
Q
Limitations of quantitative sales forecasting
A
Past performance is no gauarentee for the future
Businesses need to appreciate the SWOT and PESTLE factors that may affect the future
EG, Weather, trends, competitor activity and terrorist activity
Time consuming and complex
Doesn’t link with corporate objectives
2
Q
Calculate the moving average
A
EG, 3 year moving average
2007: 400
2008: 500
2009: 770
2008: 400+500+770= /3 = 556.6
2008: 500
2009: 770
2010: 900
2019: 500+770+900= /3= 723.3
3
Q
What is QSF
A
A statistical technique which uses data to make predictions about the future
Use time series analysis;
Helps with organising production, organise resources in the business, organise marketing.
