9. Promotional Forecast System

Promotional forecasting is the Achilles’ heel of any system. Promoting an item may require selling in one month the amount normally sold in one year. In the case of Do it Best Corp., one-third of the revenue of the stock sales was produced by promotions. Sale merchandise generally has the poorest service levels and tends to have higher levels of stock left after a promotion. This process is in need of improvement.

To solve the problem, it is necessary to implement a promotional forecast system that uses exogenous variables, or variables outside the system. An excellent statistical package such as SAS is necessary for this process. The forecast is made with multiple regressions to add value to the understanding of ...

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