8.1.3—Sales forecasting

A sales forecast estimates future sales volume or revenue using historical data, market research, trends, seasonal patterns, prices and managerial assumptions.

Forecasts inform capacity, staffing, finance and inventory. Their quality depends on the data, model, time horizon and ability to update when conditions change.

A retailer may combine last year’s seasonal pattern with a planned price change and a competitor’s launch rather than extend a trend blindly.

A precise forecast is not necessarily accurate; uncertainty should be shown and alternative scenarios considered.