CHAPTER ONE
INTRODUCTION
1.1 GENERAL INTRODUCTION
Forecasting is the process of making predictions of the future based on past and present data and analysis of trends. Sales forecasting is the ability to forecast future sales base on past months sales.Sales forecasting system uses several proven models such as qualitative versus quantitative model, average approach model, casual /econometrics forecasting model, linear regression model etc., these model are proven models use over the years by different financial institutes.
Chapter one introduces the research work and the problem definition of the research, and to know the aim of this research work, research justification tells us why it is important to research on this topic; it also covers areas like scope and limitation of study which entails the boundary of this work. Definition of terms gives summarize what each chapter entails.
1.2 PROBLEM DEFINITION
This research work was undertaken to uncover some of the problems with conventional sales forecasting management systems. Where accountant has to calculate using a specific sales model formula in forecasting on a regular basis. Using these conventional method pose lots of constraint on sales forecasting as it takes lots of time forecasting using which ever model is adopted by the sales manager or accountant or financial adviser.
1.3 SIGNIFICANT OF THE STUDY
ØProduce intelligent sales forecasts, more quickly, more effectively and with one of the tedious manual processes associated with using spreadsheets for the forecasting of demand.
ØRapid Implementation: The application can be implemented very quickly. Data can be sourced from any ODBC/OLEDB data source or from flat files.
ØForecast revenue and profit as well as quantities: The computer based sales forecasters allow forecasts to be made not just for volume, but also for selling prices, cost of goods etc.
ØA versatile software tools: Empower your forecasters to productively forecast, plan and re-plan sales, prepare budgets, monitor, monitor, review and report, all within a single, easy to use system.
1.4 AIM AND OBJECTIVES
Sales forecasting is the prediction of future sales performance based on previous sales history, upcoming events, statistical analysis or anything else that may influence sales. The project is aimed at developing a computer based application that plan purchasing and inventory system of a company. Sales forecasting is an important tool used by many business to fulfill several objectives.
ØTo develop software that serves as the basis of marketing or sales planning.
ØTo design a system that helps in financial planning and reporting or budgeting.
1.5 SCOPE OF THE STUDY
What is required is a system that support judgment forecasting, which takes the drudge out of retrieving and analyzing data, and which allows sales marketing managers, finance managers and general manager to work cooperatively on their components of the forecasting, planning and review process, within a common, shared but secure systems environment.