Comments on: Why most sales forecasts suck…and how Monte Carlo simulations can make them better

By: Kate

Kate — Tue, 23 Aug 2011 14:47:09 +0000

Hi Mr. Kevin. I just want to ask if there were already well-known companies/establishments that used the Monte Carlo Simulation Method in Sales Forecasting and found it more effective. We’re currently working on this topic and we want to know how effective and efficient this method will be in reality. Your reply will be much appreciated. Thank you Sir.

By: josephine bucio

josephine bucio — Sun, 21 Aug 2011 03:04:35 +0000

thank you Mr. Kevin.

By: Kevin Ertell

Kevin Ertell — Tue, 26 Jul 2011 14:33:28 +0000

Thanks for your questions, Michael and Josephine.

Michael: the Rate % is just an estimated conversion rate. Does that make sense?

Josephine: Monte Carlo simulations are useful any time you’re dealing with future uncertainties. In addition to sales forecasting, you can also use them for ROI calculations, project timelines, stock selections and other investments. I wrote another post a while back called “Why most project estimates suck…and how Monte Carlo simulations can make them better” (http://www.retailshakennotstirred.com/retail-shaken-not-stirred/2010/08/why-most-project-estimates-suck-and-how-monte-carlo-simulations-can-make-them-better.html) that address project timelines. I hope that helps.

By: josephine bucio

josephine bucio — Tue, 26 Jul 2011 03:19:25 +0000

me and my friends are working in this topic about monte carlo for our thesis.but we cant find a definite topic that we wish to do.any idea about application of monte carlo?aside from your example?

By: josephine bucio

josephine bucio — Tue, 26 Jul 2011 02:49:45 +0000

hi.what are other application of monte carlo in real wold like in business.