Forecasting (Sales)
Predicting future sales based on: historical data, market analysis, trends, competitor actions, planned marketing.
Real World
Next plc uses rolling 12-month sales forecasts combining historical data and trend analysis to decide stock levels for its clothing ranges, helping it avoid both excess inventory and costly stockouts.
Exam Focus
When asked to 'analyse' forecasting, always discuss both the method used and a factor that could reduce its accuracy.
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