Sales forecasting

Question 1

define sales forecasting

Answer 1

the process of predicting future sales levels

Question 2

What could the reliability of sales forecasting depend on

Answer 2

• expertise of forecasters
• how far into the future
• amount of data available
• volatility of the market

Question 3

what are the methods of sales forecasting both Qualitative and Quantitative

Answer 3

• Time series analysis
• 3 point moving average
• Extrapolation
• Delphi method
• Intuition
• Brainstorming

Question 4

Explain Time series analysis

Answer 4

taking sales figures from various points in time and using them to make predictions

Question 5

Explain a 3 point moving average

Answer 5

using the previous 3 sales values and creating an average to figure out what the next value would be

Question 6

Explain extrapolation

Answer 6

using a graph and continuing previous trends to predict the future

Question 7

What is intuition

Answer 7

making a prediction based on a feeling

Question 8

What is the Delphi method

Answer 8

sending out a questionnaire to a panel of experts then assessing data and sending out another one until a consensus is reached

Question 9

What is brainstorming

Answer 9

the process of bringing a group of people together to give share their ideas

Question 10

Evaluate the Delphi method

Answer 10

Pros
- uses experts
- multiple rounds to ensure accuracy

Cons
- Lots of time taken
- Payment could lead to uncertainty
- External factors