CHAPTER ONE: INTRODUCTION
1. 0 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.
1.1
INTRODUCTION
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.
1.6 ORGANIZATION
OF THE REPORT
Chapter
one contains the general introduction which is the chapter that sheds a clear
light on what the project is all about. It also contains state of the problems,
significant of the study, objectives of the project as well as the scope of the
study.