We aim to forecast daily sales (unit sold) of the top 5 selling SKUs for the coming week (1st August 2012 to 7th August 2012). We identify the top 5 selling SKUs in 2012.
From a total of nearly 10,000 SKUs, the top 5 SKUs alone are responsible for nearly 3% of the store’s revenues (see Appendix I). Also these 5 SKUs are bellwether products for their classesand it would be instructive for store managers to note change in sales in these as an indication for change in sales for the respective classes themselves. Forecasts of the sales of the top 5 SKUs can help managers to:
Estimate volatility of earning and design promotion campaigns to smoothen earnings
Protect against stock-outs to avoid lost business opportunities