Question

A manufacturing company plans to forecast its sales. Upper management plans to assemble its most senior personnel to have meetings and provide their opinions about what the company’s sales revenue would be like in the future. The judgment of the senior executives will drive the company’s final sales forecast. Which method of sales forecasting does this example convey? A. Delphi method B. jury of executive opinion method C. moving averages method D. buyer intentions method E. market share method

Answer 1

Answer:

B. Jury of executive opinion method.

Explanation:

There are several methods of forecasting sales, one of which is Jury of executive opinion method. In this method, senior executives in an organization are called upon by the upper management to analyze, deliberate and come up with what probably will be the future sales of the organization which will in turn drive future revenue.

In as much as the people involved have experience in terms of forecasting, their overall submission will form the basis of future sales forecast of the organization.

Unlike Delphi method which involves the use of experts in analyzing and forecasting future sales and whose procedure is somewhat rigorous and formal, jury of executive opinion is not formal and only rely on the outcome of deliberations done by the managers appointed by the organization.

Other method of sales forecast are market share method, buyer intention method. etc.