Compare two sales forecasting methods:
· Static Forecast: Orders placed based on a single, initial forecast for the entire season.
· Dynamic Forecast: Orders placed for a short initial period, then updated based on actual sales and used for the remaining season.
Data Setup:
1. Products: Select 5-10 products (P1, P2, P3, P4, P5).
2. Initial Forecast: Enter an initial sales forecast unit for each product. For example, 200 units for P1. 100 units for P2, 250 units for P3……
3. Sales Period: Set the sales period to 90 days
4. Daily Sales: Calculate daily sales for each product by dividing the forecast by the sales period. Example, P1= 200/90= 2.22 units per day.
5. Initial Order: Specify the initial order quantity for the first 20 days. E.g. 44 units for P1

6. Sales Monitoring Period: Define the sales monitoring period as 14 days
7. Costs