Sales Forecasting System for Chinese Tobacco Wholesalers

Forecasting of the market demand is an important part of supply chain management of the tobacco wholesalers in China. Traditional forecasting method for tobacco market demand bases on the orders of retailers and the evaluations of the different departments which use different forecasting methods. The existing forecasting method causes normally large forecasting errors between the forecasting results and the actual sales amount. This paper presents a new market forecasting system for tobacco wholesalers in China based on a new developed market demand forecasting model. By applying the new system for a sales company in China shows that this model can help sales company to improve the forecasting accuracy for annual and monthly market demands significantly.