Term
|
Definition
| Quantifiable estimate of future demand |
|
|
Term
|
Definition
| Process of estimating the future demand for our products and services. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
Cause-and-effect methods
(external or exogenous models) |
|
|
Term
|
Definition
| Most appropriate for manufacturing and wholesale firms |
|
|
Term
|
Definition
| Applicable to all firms. Customers express preference for new or modified products |
|
|
Term
|
Definition
| Most appropriate for firms that have several outlets. Introduction of new product which has characteristics similar to previous products |
|
|
Term
|
Definition
| can include surveys, tests, and observations. Results are statistically extrapolated to develop forecasts of demand for products. |
|
|
Term
|
Definition
| Uses a panel of experts to obtain a consensus of opinion. Used primarily for unique new products or processes for which no previous data exist. |
|
|
Term
| Time series forecasting models |
|
Definition
use historical records that are readily available within the firm or industry to predict future sales.
(INTERNAL) (INTRINSIC)
Assumes that past sales are a fairly accurate predictor of future sales. |
|
|
Term
|
Definition
| Actual observation of the variable to be forecast |
|
|
Term
|
Definition
|
|
Term
|
Definition
| assumes that actual sales for some recent previous time periods are the best predictor of future sales |
|
|
Term
|
Definition
Mean Absolute Deviation
Tool used to measure the forecasting error of a model |
|
|
Term
|
Definition
| absolute difference between forecasted sales and actual sales |
|
|
Term
| Weighted moving average model |
|
Definition
| assumes that the closest time period is a more accurate predictor of future sales than previous time periods |
|
|
Term
| Exponental smoothing model |
|
Definition
| uses a smoothing constant, alpha, as an adjustment in determining the forecast |
|
|
Term
|
Definition
| statistical method known as least squared regression |
|
|
Term
|
Definition
| caused by the predictable shopping habits of our customers |
|
|
Term
|
Definition
| variation caused by growth or decline in demand for our product or service over time |
|
|
Term
|
Definition
| caused by general economic factors that affect our industry |
|
|
Term
| Noise is random variation |
|
Definition
| data that is not explained by the other variations |
|
|
Term
| Internally Generated Funds |
|
Definition
| Net income or profits after taxes earned over an accounting period |
|
|
Term
| Pro forma financial statement |
|
Definition
| projected statement based on the forecast |
|
|
Term
| Percentage of sales method |
|
Definition
| based on the fact that assets and liabilities historically vary with sales |
|
|
Term
| Financing Capital Needed (FCN) |
|
Definition
| financial funds needed to acquire necessary to support a firm's sales growth |
|
|
Term
|
Definition
| Incentives that companies give to collect payment earlier. |
|
|
Term
|
Definition
| current assets and the current liabilities of a business |
|
|
Term
|
Definition
| difference between a businesses |
|
|
