Sales Forecasting

Sales forecasting, an Introduction:

     Forecasts are the raw material of planning.  For most businesses, the sales forecast is the first step.  It can be the basis for developing plans to run the business and plan future strategy.  If sales can be reasonably anticipated, costs and inventory can be controlled, and customer service enhanced.  Sales estimates provide this help.

 

    Even if much of the content in this paper is familiar, a review will probably provide additional information that is helpful in learning about forecasting strategy and tactics.  In recent years sales forecasting has become an important business endeavor.  It is essential that company personnel and small business owners understand forecasting methodology.

 

     Forecasts can be classified in several ways:  by purpose, as either operational or strategic; by type, as quantitative (statistical) or qualitative (judgment); or by method, that is, by forecasting technique.

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