Business Production Control

A vendor keeps careful records of the number of magazines she sells each day and the various costs that are relevant to her decision regarding the optimal number of magazines to purchase. For what reason might her results be inaccurate? What would she need to do in order to accurately measure the daily demand for magazines?

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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…………….

APA

184 Words