ACTIVITY 2

1. What are some of the consequence of poor forecasts? Explain.

Poor forecasting leads to poor business decisions above all, poor sales forecasting
and inventory planning can have a significant negative impact on the credibility of a
business

2. Contrast the terms sales and demand

Sales is what you buy, demand is what you want or the desire to own something,
whether it be a physical object, experience or capability then the sales is the process
by which people pay money to acquire something the demand.

3. Which type of forecasting approach, qualitative or quantitative is better?

Both qualitative and quantitative methods are often complemented each other to
arrive a better conclusion, through each of them have their own limitations. There is
no globally best or accurate forecasting methods or techniques. At the same time,
there is no forecasting techniques, without limitations or pitfalls, the extend may vary
and a bit higher or qualitative techniques than a quantitative ones.

4. How has technology had an impact on forecasting?

Technology had an impact on forecasting that must become ass accepted and
useful as these other analytics devices it become standard tools of management.
Technology impact is to be useful, technology will take in a given application of
some specific future date. Like only other forecasts, their purpose is simply to help
evaluate the probability and significance of various possible future developments so
that managers can make better decisions.

5. Who needs to be involved in preparing forecasts?

The process of preparing forecasts is a joint activity that involves the management,
the project teams, head of departments, the chief financial officer and manager’s
they had ultimately responsibility to prepare the forecast, they’re the ones that are
accountable and by following these. There simple techniques, they’ll also produce a
much more accurate forecast, which certain reflects well on them as a sales
managers.