Business Production Control 2

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Determining sales estimates has been a very challenging aspect to small business owners. Underestimating costs can lead to cancelled orders while overestimating leads to losses due to unwanted stock. Previous records on sales have been widely used to predict sales. However there is no forecast that has been termed as accurate. Different businesses use different variables in predicting sales. By just using previous sale records, a business vendor ignores other factors that might affect his sales. Anticipated events, new competitors, marketing and other uncontrollable factors like economic fluctuations, technological and political changes can lead to erroneous forecasts (Hyndman & Koehler, 2005)

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