Article: Look over sales figures for past years to determine which times in the year account for the higher percentage of your sales. Are they constant? Do you experience higher sales in winter or summer? Measure the increase or decrease in sales during these times. Was the change higher or lower in certain years? Then, think about why this might be the case. Use what you've learned and apply it to the current year's forecast. For example, if you sell snow boots, you might have experienced a particularly large boost in sales in a cold winter. If this year is forecasted to be a similarly cold winter, you should increase your demand forecast accordingly. This refers to situations where a change in your product or its market resulted in higher or lower sales. Create charts of your historical sales for the product and mark important dates, for example a price increase or the introduction of a competing product. This can also be broader, like a reaction to the shifting economy or changes in consumer spending. Read relevant trade journals and newspaper articles to gather this information. Having all of this data at hand can give you a better idea of what might affect your future demand. A life cycle refers to the "life" of your products, between when it was first introduced and the present day. Look at the sales of your product at various stages. Examine the nature of customers who buy the your product during these stages. For example, you will have early adopters (those who love the latest technology), mainstream buyers (people who wait for product reviews and referrals), laggards (they only buy when the product has been out for a long time), and other types of consumers. This will help you determine your product’s life cycle trends and the demand patterns for your product. The industries that use this model the most include high technology, fashion, and products facing short life cycles. What makes this approach unique is that the cause of the demand is directly linked to the product’s life cycle. Create a model that simulates the flow of components into manufacturing plants based on your material requirement planning schedules and the distribution flow of your finished goods. For example, calculate the lead time to receive each component including shipping time no matter where it is sourced in the world. This will give you insight on how fast you can make your product to meet the demand. These models are known to be difficult and cumbersome to create and maintain.
What is a summary of what this article is about?
Examine previous years' sales for monthly or seasonal trends. Look for customer reactions. Create a life cycle model. Use a simulation model.