2.

Sales force composite

A technique used by
production managers to
project the future demand
for a good or service
based on the total amount
that each salesperson
anticipates being able to
sell in their region. For
example, a sales force
composite analysis might
be helpful to a
manufacturing business
deciding how much
goods to produce within a
given time frame and
what amount of raw
materials will be needed.

1.

2.
3.

4.

Advantage
Involve the people
(sales personnel)
Who will be held
responsible for the
results?
Is fairly accurate.
Aids in controlling
and directing sales
effort.
Forecast is
available for
individual sales
territories.

Disadvantage
1. Estimators (Sales personnel) have
a vested interest and therefore may
be biased.
2. Elaborate schemes sometimes are
necessary to counteract bias.
3. If estimates are biased, process to
correct the data can be expensive.