Sale Forecasting

MOHD ZURAIMY BIN YAAKOB 214437

SALES FORECASTING

Sales forecasting is the process of estimating what the business sales are going to be in future. Firm have to estimate its future demand for its products or services and also unmet demand that will occur in future. Firm should provide enough supply for its future.

Sales Forecasting also provide information for firm to make business decisions and also to estimate how much firm output unit either in dollar that can be saw in future time period. By using sales forecasting firm can plan it sales and estimate what will happen in future by using sales forecasting.

There are several tools that firm can use in estimating future sale which is using qualitative technique or quantitative technique. Qualitative technique is a method of drawing from past experience and perception to form expectation for future behavior. Firm used its historical data to analyze its future behaviors of sales. Quantitative technique is using a known data to construct a formula that can be used to estimate scenario.

Sales forecasting are always looking for future possibilities, even though forecasting always wrong but it actually can create foretelling image for firm to see what next and also create mean for analysis. Sales forecasting are really important for firm because most of business are depend on its sales. Sales are the lifeblood of business, it is important for firm make a sale and generate income. Most of firm fail to recognize its sales forecast and it benefit to business.

For firm to do better forecasting they have to understanding what is forecasting it is and what is not. They have to forecast the demand and plan supply specifically. To make forecast more accurate, firm have to communicate, cooperate and collaborate with all its functional team in planning sales forecasting. Then, firm should eliminate unimportant data and analysis that they got by using tools wisely and use the data to make it important. Lastly, firm should...