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4.3 SALES FORECASTING (Potential benefit (know the quantity of material to…
4.3 SALES FORECASTING
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Extrapolation Method
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plotted on a time-series graph, then the line can be extended to predict the future
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Benefits: useful for identifying and applying the seasonal variation, reasonably accurate for short-term, can assist in planning resources
Limitations : fairly complex calculation,no consideration is taken of qualitative, newly established businesses will have insufficient data to base moving average