Scribd
Upload
188 views

Benefits and Limitations of The Moving Average Sales Forecasting Method For Rajesh

The moving average sales forecasting method has benefits and limitations for Rajesh's business. It allows identification of future trends and seasonal variations, helping increase profits in upcoming seasons. However, it is complicated for start-ups with limited data and does not provide accurate long-term forecasts. While the moving average would help Rajesh due to past sales data, it may not yield accurate forecasts for some time until more data is collected.

Uploaded by

jan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
188 views

Benefits and Limitations of The Moving Average Sales Forecasting Method For Rajesh

The moving average sales forecasting method has benefits and limitations for Rajesh's business. It allows identification of future trends and seasonal variations, helping increase profits in upcoming seasons. However, it is complicated for start-ups with limited data and does not provide accurate long-term forecasts. While the moving average would help Rajesh due to past sales data, it may not yield accurate forecasts for some time until more data is collected.

Uploaded by

jan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Jan Žejdlík

7.I.B.
Discuss the benefits and limitations of the moving average sales forecasting method for
Rajesh

Planning for future purchases can be a beneficial process for the business, but it all comes
down at a price. Having the ability to identify future trends and seasonal variation is a big
stop foreword for the development of the business. On the other hand, these methods are
not appropriate for the long-term investments because they do not provide an accurate
result.

The benefits of using the moving average to determine short-term seasonal variation gives
Rajesh the ability to increase his profits in the upcoming seasons which can be further
applied in the trend forecast. Factor to take into a consideration, is the stability of the
economic situation because it ensures stable and accurate search results that are also
appropriate for further usage.
In contrast, the moving average is complicated to figure out for the start-up companies, with
no accurate data, over the five-year timeframe. The earlier data is collected the higher
benefit it is going to have in a long-term, this is considered as a qualitative method.

Rajesh having a moving average would be beneficial because the company has kept the past
data over long time period and is not relatively new in the market. On the other hand this
model will become useful for the company after longer period of time because it will not
provide accurate data because of the time spent.

You might also like