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Chapman University

2023

Sales surprise

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Full-Text Articles in Business

The Effects Of Sales Surprise On Inventory Turnover: An Empirical Study, Muhammad Yousaf, Bruce Dehning Sep 2023

The Effects Of Sales Surprise On Inventory Turnover: An Empirical Study, Muhammad Yousaf, Bruce Dehning

Accounting Faculty Articles and Research

Sales surprise (SS) is a significant factor in a firm’s inventory turnover (ITO). In order to estimate SS, it is necessary to select an appropriate approach of sales forecasting. The current study’s main purpose is to examine the effects of SS on ITO. The data was gained from the Albertina database from 2017 to 2021, for two sectors: manufacturing and construction. The Czech firms’ panel data was used to estimate sales forecasts by four different methods: (i) sales linear forecast (SLF), (ii) sales change (SCH), (iii) sales growth (SG), and (iv) sales forecast random walk (SRW). The two most accurate …