Past Sales Data for Forecasting and Demand Planning Quiz

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How can past sales histories be used to prepare an initial forecast?

Analyzing competitor products

Identifying sales trends and patterns (correct)

Assessing employee productivity

Estimating future marketing expenses

What is one of the key benefits of using past sales histories for forecasting?

Expanding market reach

Improving accuracy of sales predictions (correct)

Reducing production costs

Enhancing customer service

In what way can past sales histories contribute to demand planning?

Anticipating seasonal fluctuations in demand (correct)

Optimizing supply chain logistics

Determining employee training needs

Forecasting geopolitical impacts on sales

How can historical sales data inform the preparation of an initial forecast?

Historical sales data can be analyzed to identify patterns, trends, and seasonality, which can then be used to make informed predictions for future sales. Signup and view all the answers

What specific insights can be gained from analyzing past sales histories for forecasting?

By analyzing past sales histories, businesses can gain insights into customer behavior, market trends, and the impact of external factors on sales, all of which can be valuable for preparing an initial forecast. Signup and view all the answers

Why is it important to consider past sales histories when preparing an initial forecast?

Considering past sales histories provides a historical context that can help in understanding the dynamics of the market, customer preferences, and potential demand fluctuations, thus improving the accuracy of the initial forecast. Signup and view all the answers