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Unit 5 - Sales Forecasting - Coggle Diagram
Unit 5 - Sales Forecasting
Need
Future sales
Projected sales
Investment decisions
Production scheduling
Material planning
Sales analysis
Product design trends
Factors Affecting SF
LT
Competition
Styles/fashions
Consumer earnings
Population changes
Weather
Economy status
ST
Labor issues
Inventory shortages
Working capital
Price changes
Distribution method
Production capacity
New product lines
Methods SF
Judgmental (subjective)
Opinion survey
Executive opinion
Customer and distributor surveys
Marketing trials
Market research
Delphi technique
Time series (past data)
Components
Trend (T)
Cyclical fluctuation (C)
Seasonal variation (S)
Irregular variations (R)
Methods
Moving Averages:
Exponential Smoothing:
Regression Analysis:
Market Test Method:
Econometric (cause-effect)
Benifits
Inventory control
Staffing optimization
Customer insights
Sales team utilization
Obtaining financing
Limitations
Mix of facts and estimates
Potential for inaccurate forecasts
Changing times