30 Sales Forecasting

What is the goal of forecasting? (Chose the BEST answer)

• To underutilize facilities

• To plan for new storage options

• To help plan

• To predetermine number of mangers

A time-series analysis is a forecasting technique that ___________.

• predicts future levels of productivity in the work force.

• predicts future levels of motivation in the work force.

• predicts future levels of profit for the organisation

• predicts future levels of sales for the organisation

A moving average involves using the most recent averages to determine demand.

• True

• False

Sales forecasting key benefit is the.......

• reduction of uncertainty in the future and therefore lowers risk

• reduction of sales in the future and therefore lowers profits

• knowing exactly what sales will be next year so you can inform stakeholders what profit will be made.

• increase of sales in the future and therefore increase in profits

What would be the forecasted sales for Week 5, using a four-week moving average?

• 4000

• 3975

• 3000

• 5500

Using past experience or past business data to forecast future sales is called

• Extrapolation

• Invention

• Depreciation

• Correlation

Sales forecasting methods can be categorised into quantitative and qualitative techniques. Which of these is quantitative?

• Time series analysis

• Delphi technique

• Brainstorming

• Intuition

Calculate the moving average of these three months:

January 230

February 260

March 350

• 320

• 280

• 960

• 840

Calculate the moving average of these three months:

January 152

February 131

March 179

• 152

• 156

• 138

• 154

In order to extrapolate the data, _________ is drawn

• line of estimation

• line of best fit

• line of time-series

• line of washing