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  • Sales Forecasting: Rupam Deb (20076)

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    Siva Bhandaru
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    This document provides an overview of sales forecasting. It defines sales forecasting as estimates of future sales. It notes that sales forecasting is difficult as forecasts are often wrong. Key decisions like employment levels, promotions, and production capacity are derived from sales forecasts. Forecasting can be qualitative using methods like user expectations or quantitative using methods like time series analysis. The selection of a forecasting method considers accuracy needs, available data, time horizon, and product life cycle stage. Sales forecasts link to budgets for sales, production, costs, profits, and balance sheets. The common forecasting process has three stages: a macroeconomic forecast, industry forecast, and company forecast.

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    Sales Forecasting

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    This document provides an overview of sales forecasting. It defines sales forecasting as estimates of future sales. It notes that sales forecasting is difficult as forecasts are often wrong. Key decisions like employment levels, promotions, and production capacity are derived from sales forecasts. Forecasting can be qualitative using methods like user expectations or quantitative using methods like time series analysis. The selection of a forecasting method considers accuracy needs, available data, time horizon, and product life cycle stage. Sales forecasts link to budgets for sales, production, costs, profits, and balance sheets. The common forecasting process has three stages: a macroeconomic forecast, industry forecast, and company forecast.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    36 views11 pages

    Sales Forecasting: Rupam Deb (20076)

    Uploaded by

    Siva Bhandaru
    This document provides an overview of sales forecasting. It defines sales forecasting as estimates of future sales. It notes that sales forecasting is difficult as forecasts are often wrong. Key decisions like employment levels, promotions, and production capacity are derived from sales forecasts. Forecasting can be qualitative using methods like user expectations or quantitative using methods like time series analysis. The selection of a forecasting method considers accuracy needs, available data, time horizon, and product life cycle stage. Sales forecasts link to budgets for sales, production, costs, profits, and balance sheets. The common forecasting process has three stages: a macroeconomic forecast, industry forecast, and company forecast.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 11

    Sales Forecasting

    Rupam Deb ( 20076 )

    Definition :
    Sales Forecast refers to the estimates of future sales of a companys products in the market.

    Facts :
    Sales forecasting is a difficult area of management forecasts made usually turn out to be wrong sales forecasting is a science & an art Sales forecasting is very popular in industrially advanced countries where demand conditions are more uncertain than the supply conditions.

    Key decisions that are derived from sales forecast include:


    -Employment levels required -Promotional mix -Investment in production capacity

    Types of forecasting :
    Macro forecasting is concerned forecasting markets in total. with

    Micro forecasting is concerned with detailed unit sales forecasts.

    Forecasting can be classified into qualitative forecasting and quantitative forecasting . The methods used in qualitative forecasting are :
    user expectations sales force composite jury of executive opinion Delphi technique and market test

    Methods used forecasting are:

    in

    quantitative

    time series analysis moving averages exponential smoothing regression and correlation analysis, and multiple regression models

    Selection Of Forecasting :
    The degree of accuracy required The availability of data and information Time horizon that the sales forecast would cover. The position of the products in its life cycle

    Relationship of Forecasting to Budgets :


    Sales Forecast
    Sales Budget

    Production Budget
    Direct Labor Budget

    COGS Budget
    Budgeted P/L Statement

    Budgeted Balance Sheet

    A common method of preparing a sales forecast has three stages :


    Prepare a macroeconomic forecast
    Prepare an industry sales forecast Prepare a company sales forecast

    Forecasting Process
    Forecast Objective Determined independent and dependent variables Develop Forecast Procedure

    Select forecast Analysis method Evaluate Result versus forecast

    Total forecast Procedure

    Make & finalize forecast

    Present assumption about data

    Gather & analyze data

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