Making accurate Sales Forecasts in MikesBikes is crucial in ensuring that you are producing enough of your products to meet the demand of your consumers, and to ensure that you are not wasting money and factory resources in unnecessarily overproducing your products.
A Sales Forecast is a prediction of the number of units you believe you can sell in the year ahead. This is calculated by using the following equation:
Sales Forecast for Next Year = Estimated Market Size Next Year x Expected Percentage of Market Share
Your Planned Production figures should be based on your Sales Forecast for next year and you Existing Stock levels, see the Product Summary report.
Planned Production = Sales Forecast – Current Stock on Hand
If you had Lost Sales last year, your sales forecasts or your effective capacity may have been too low.
Tutorial Video: How to Accurately Forecast Sales
Have a look at our tutorial video which explains Sales Forecasting in further detail:
