When doing the marketplace simulation, one of the hardest things for me has been to estimate how many units that will be sold. This is a very cruicial part in the management of a company and something that I have not considered becoming a challenge before.

When I started with the simulation, me and my group felt that it was a good idea to to be careful with the production. The problem was that the projected demand was very off and therefore we missed alot of sales. The next quarter we got the brilliant idea to produce alot more than we expected to sell. This seemed to be a fail as well because the sales were not that good but the production cost became very high. Therefore we felt like it was a good idea to make a large inventory of overproduced products. Even this was a fail due to that when developing the product to a newer version, the old one laying on the shelves became old electronics that was hard to sell.

I have read alot of different articles about how to forecast the sales and have found out that there is no easy way to predict the demand of your product! The main thing that most of the articles pointed out was to make use of all histoirical data of your sales. You need to use your own experience and be prepared to change the forecast continuously, because it will be almost impossible to do accurate predictions!

 

Simon

 

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