Sales Forecasts 5.02

A ________ predicts a company's future sales.

• Revenue stream

• Sales forecast

• Wholesaler

• Department manager

Qualitative forecasting is based on which of the following? Choose ALL that apply.

• Expert opinion

• Past experience

• Factual numbers

• Current observations

Quantitative forecasting is based on? Select ALL that apply.

• Hard facts

• Expert Opinions

• Numerical data

• Current observation

Weaknesses of qualitative data included which of the following.

• Could be biased and lack accuracy

• Provides a variety of viewpoints

• It is inexpensive

• Beneficial when there isn't hard facts available

Benefits of quantitative data include?

• Requires subscriptions to industry publications

• It is expensive

• It is complicated to organize and compile data

• It is reliable and objective

Short-term forecasts are for 3 months or less. They are used to

• Help with day-to-day planning, scheduling, staffing and inventory

• Help create yearly budgets

• Plan for capital expenditures, like land or machinery.

• Decide on developing new products

Intermediate forecasts cover from 3 months to 2 years. They are used to:

• Plan day-to-day activities like scheduling, staffing, and inventory

• Plan yearly budgets and capital expenditures

• Plan for new buildings/facilities

• Plan for new product development

Long-term forecasts are for two or more years. Long-term forecasts are used to:

• Day-to-day planning, scheduling, staffing, and inventory

• Planning for capital expenditures

• Planning yearly budgets

• Strategic Planning like when to develop new products or build new facilities

True or False: Sales forecasts helps companies to determine how much raw materials they need and how many products they need to make.

• True

• False

True or False: Sales forecasts can help companies decide when/if they need to hire more employees.

• True

• False