Demand Forecasting

Demand forecasting is the process of estimating future customer demand for a product or service. It involves analyzing historical sales data, market trends, and various factors that influence consumer behavior, such as economic conditions, seasonality, and promotional activities. The aim of demand forecasting is to predict how much of a product will be needed in the future so that businesses can make informed decisions regarding inventory management, production planning, and resource allocation. Accurate demand forecasts help companies optimize their operations, reduce costs, and improve customer satisfaction by ensuring that the right products are available at the right time. Techniques for demand forecasting can include qualitative methods, such as expert opinions and market research, and quantitative methods, such as time series analysis and statistical modeling.