{"id":527,"date":"2018-08-10T11:23:04","date_gmt":"2018-08-10T11:23:04","guid":{"rendered":"https:\/\/www.smartsims.com\/support\/?post_type=ht_kb&#038;p=527"},"modified":"2023-11-12T21:13:35","modified_gmt":"2023-11-12T21:13:35","slug":"how-to-sales-forecast-mikesbikes-introduction","status":"publish","type":"ht_kb","link":"https:\/\/www.smartsims.com\/support\/article\/how-to-sales-forecast-mikesbikes-introduction\/","title":{"rendered":"Forecasting Sales in MikesBikes Introduction"},"content":{"rendered":"\n<p>In <a href=\"https:\/\/www.smartsims.com\/business-simulation\/mikes-bikes-introduction\/\">MikesBikes Introduction<\/a> you will be required to formulate a Sales Forecast for your products, as well as a required production quantity:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"397\" height=\"499\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen.png\" alt=\"\" class=\"wp-image-2353\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen.png 397w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen-239x300.png 239w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen-40x50.png 40w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen-48x60.png 48w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Pricing-Forecast-Production-Screen-80x100.png 80w\" sizes=\"auto, (max-width: 397px) 100vw, 397px\" \/><\/figure>\n\n\n\n<p>A Sales Forecast is a prediction of the number of units you believe you can sell in the year ahead. Making accurate Sales Forecasts is crucial to ensure you produce enough bikes to meet customer demand, while not producing too much leaving you with excess stock on hand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Video: <strong>How to Forecast Sales Accurately<\/strong><\/h2>\n\n\n<a id=\"69e7d68fd0ce7\" rel=\"wp-video-lightbox\" href=\"https:\/\/vimeo.com\/477892230?width=960&#038;height=540\" title=\"\"><img decoding=\"async\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2021\/06\/MikesBikes-Introduction-Forecasting-Sales.jpg\" class=\"video_lightbox_anchor_image\" alt=\"\" \/><\/a>    <script>\r\n    \/* <![CDATA[ *\/\r\n    jQuery(document).ready(function($){\r\n        $(function(){\r\n            var width = $(window).innerWidth();\r\n            var setwidth = parseFloat(960);\r\n            var ratio = parseFloat(0.5625);\r\n            var height = parseFloat(540);\r\n            var link = 'https:\/\/vimeo.com\/477892230?width=960&amp;height=540';\r\n            if(width < setwidth)\r\n            {\r\n                height = Math.floor(width * 0.5625);\r\n                \/\/console.log(\"device width \"+width+\", set width \"+960+\", ratio \"+0.5625+\", new height \"+ height);\r\n                var new_url = wpvl_paramReplace('width', link, width);\r\n                var new_url = wpvl_paramReplace('height', new_url, height);\r\n                $(\"a#69e7d68fd0ce7\").attr('href', new_url);\r\n                \/\/console.log(new_url);\r\n            }\r\n        });\r\n    });\r\n    \/* ]]> *\/\r\n    <\/script>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sales Forecast Worked Example<\/h2>\n\n\n\n<p>A Sales Forecast in MikesBikes is calculated using the following equation:<\/p>\n\n\n    \t\t<div class=\"hts-messages hts-messages--info    \"   >\r\n    \t\t\t    \t\t\t    \t\t\t\t<p>\r\n    \t\t\t\t\t<strong>Sales Forecast = <\/strong><strong>Forecast Market Demand Next Year x Expected Percentage of Market Share<\/strong>    \t\t\t\t<\/p>\r\n    \t\t\t    \t\t\t\r\n    \t\t<\/div><!-- \/.ht-shortcodes-messages -->\r\n    \t\t\n\n\n\n<p>You can find the figures required for the above calculation on the <strong>Sales Information<\/strong> report at the right of your product decision screen:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"403\" height=\"196\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button.png\" alt=\"\" class=\"wp-image-2337\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button.png 403w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button-300x146.png 300w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button-50x24.png 50w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button-60x29.png 60w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-Button-100x49.png 100w\" sizes=\"auto, (max-width: 403px) 100vw, 403px\" \/><\/figure>\n\n\n\n<p><br><strong>These figures are located on the report here:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"346\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast.png\" alt=\"\" class=\"wp-image-2336\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast.png 600w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast-300x173.png 300w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast-50x29.png 50w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast-60x35.png 60w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Sales-Information-Report-for-Conducting-a-Sales-Forecast-100x58.png 100w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p><br><strong>So for the example above:<\/strong><br><br>41,000 x 53.2% = 21,812 units.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Now set your Productio<\/strong>n Quantity<\/h2>\n\n\n\n<p>Your Production decision should be your Sales Forecast minus Opening Inventory (if any).<\/p>\n\n\n    \t\t<div class=\"hts-messages hts-messages--info    \"   >\r\n    \t\t\t    \t\t\t    \t\t\t\t<p>\r\n    \t\t\t\t\t<strong>Production = Sales Forecast &#8211; Opening Inventory<\/strong>    \t\t\t\t<\/p>\r\n    \t\t\t    \t\t\t\r\n    \t\t<\/div><!-- \/.ht-shortcodes-messages -->\r\n    \t\t\n\n\n\n<p><strong>Our example above is entered on the decision screen below:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"610\" height=\"319\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision.png\" alt=\"\" class=\"wp-image-2338\" srcset=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision.png 610w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision-300x157.png 300w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision-50x26.png 50w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision-60x31.png 60w, https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2023\/09\/MBI-Production-Decision-100x52.png 100w\" sizes=\"auto, (max-width: 610px) 100vw, 610px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>You will see that the Sales Forecast figure matches the Units Available figure at the bottom, meaning we are producing enough bikes to meet expected demand (assuming you have <a href=\"https:\/\/www.smartsims.com\/support\/article\/factory-capacity-in-mikesbikes-introduction\/\">sufficient Factory Capacity<\/a>).<\/p>\n\n\n\n<p><strong>Note:<\/strong> You may want to consider producing 5-10% more than your Sales Forecast to allow a buffer of extra stock if demand is greater than forecast. However, keep in mind that if you have too much inventory you will incur high warehousing costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Video: How to Forecast Sales for a New Market Segment<\/h2>\n\n\n<a id=\"69e7d68fd0d37\" rel=\"wp-video-lightbox\" href=\"https:\/\/vimeo.com\/483893448?width=960&#038;height=540\" title=\"\"><img decoding=\"async\" src=\"https:\/\/www.smartsims.com\/support\/wp-content\/uploads\/2021\/06\/MikesBikes-Introduction-Forecasting-Sales-in-a-New-Market-Segment.jpg\" class=\"video_lightbox_anchor_image\" alt=\"\" \/><\/a>    <script>\r\n    \/* <![CDATA[ *\/\r\n    jQuery(document).ready(function($){\r\n        $(function(){\r\n            var width = $(window).innerWidth();\r\n            var setwidth = parseFloat(960);\r\n            var ratio = parseFloat(0.5625);\r\n            var height = parseFloat(540);\r\n            var link = 'https:\/\/vimeo.com\/483893448?width=960&amp;height=540';\r\n            if(width < setwidth)\r\n            {\r\n                height = Math.floor(width * 0.5625);\r\n                \/\/console.log(\"device width \"+width+\", set width \"+960+\", ratio \"+0.5625+\", new height \"+ height);\r\n                var new_url = wpvl_paramReplace('width', link, width);\r\n                var new_url = wpvl_paramReplace('height', new_url, height);\r\n                $(\"a#69e7d68fd0d37\").attr('href', new_url);\r\n                \/\/console.log(new_url);\r\n            }\r\n        });\r\n    });\r\n    \/* ]]> *\/\r\n    <\/script>\n","protected":false},"excerpt":{"rendered":"<p>In MikesBikes Introduction you will be required to formulate a Sales Forecast for your products, as well as a required production quantity: A Sales Forecast is a prediction of the number of units you believe you can sell in the year ahead. Making accurate Sales Forecasts is crucial to ensure&#8230;<\/p>\n","protected":false},"author":3,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[20],"ht-kb-tag":[],"class_list":["post-527","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-mikesbikes-introduction-year-one"],"_links":{"self":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/comments?post=527"}],"version-history":[{"count":23,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/527\/revisions"}],"predecessor-version":[{"id":2465,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/527\/revisions\/2465"}],"wp:attachment":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/media?parent=527"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-category?post=527"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-tag?post=527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}