I've been looking around to know how to calculate a sales forecast for sales generated. Not profit/loss; only sales made.

Oracle's calculation shows some examples but I'm not sure if that's the standard way to do the calculation. Is there a formula for forecasting? A special formula?

I do know you have to compare previous values with x but what is x? A percentage?

  • 1
    if you look at the methods detailed in that link you will notice that the majority are regressions of one type or another which is a standard way of extrapolating series data in statistics and is commonly used by quants and actuaries to generate a sales forecast, amongst other things. Their models will be more complex and in many variables. – MD-Tech Oct 25 '16 at 10:18
  • what is the goal of the calculation? knowing that may be determine what sort of factor to use. – mhoran_psprep Oct 25 '16 at 11:38
  • Think of it as: being self employed, i need to determine how much money im expected to earn today or next week, based on how I performed in the past (last week, month). – Sylar Oct 25 '16 at 11:40

There are different methods and the link in your question does give a wide variety of them.

The basic method is to either:

  • use the past as an indicator of the future and then use an algorithm to extrapolate the performance into the future.
  • or state that the conditions have changed and the previous numbers have to be adjusted up or down to reflect the changes. What type of changes?: open new store or close a store; release a new product or end a popular product; have a competitor do something different; go viral in positive way or a negative way.

Determining these adjustments and forecasting their impact is the the key.

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