Sales Forecasting, Sales Planning, and their Relationship to Master Production Scheduling in a Computerized Manufacturing Environment

Date of Submission


Document Type


Degree Name

Master of Science in Accounting




Anne Rich


Sales forecasting, Production management

Call No. at the Univ. of New Haven Library

AS 36 .N29 Acc. 1983 no.6


Planning within a manufacturing concern is essential in today's business environment because the decisions made in the present, whether short-term or long-term, will have an impact on the future of the company. This thesis develops the logical relationship that should exist within a manufacturing concern to insure proper and adequate planning for the future. This relationship consists of a comprehensive forecasting system suitable to the company that provides key data used in developing the long and short range plans which are used as major input into the planning and scheduling of production to meet the sales objectives.

This thesis explores the fundamentals and theory behind a forecasting system, defines the two basic methodologies of sales forecasting, along with the most widely used techniques associated with each, the advantages and disadvantages of each technique, and concludes that no one basic technique should be considered the best. It further explores the importance of the sales plan and how these two concepts, sales forecasting and sales planning, are directly related to and are key elements in Master Production Scheduling.

The planning and scheduling of production, to meet the needs of the sales plan, are the focal points of the overall manufacturing production system. This thesis takes one particular production system, Material Requirements Planning, and, using the author's company as an example, shows the fundamental relationships that exist between sales and production planning.

The conclusion reached emphasizes that forecasting and production systems within a given company interact constantly with each other to provide management with the most current information necessary to make the important every day decisions that affect the goals and objectives of the company.