We have noticed two common mistakes students make when forecasting sales:
- Excessive Closing Inventory – producing too much stock that sits unsold.
- Lost Sales – running out of stock because production didn’t meet demand.
Both problems usually come from inaccurate sales forecasts for the year ahead. Ideally, a firm would minimize these issues by forecasting sales carefully and adjusting production based on the forecast, while also considering existing inventory levels.
We have a helpful article available that shows exactly how to forecast sales in MikesBikes Introduction and MikesBikes Advanced for both new and existing products. It’s a great resource to get it right from the start!