What is Demand Forecasting?

Demand forecasting is a field of predictive analytics which tries to understand and predict customer demand to optimize supply decisions by corporate supply chain and business management. Demand forecasting involves quantitative methods such as the use of data, and especially historical sales data, as well as statistical techniques from test markets like time series analysis, causal models etc.
image

4 Likes

The economics of the world is dependent on Supply and Demand. Demand forecasting in simple terms would the demand of a product due to certain circumstances in near future. For example, during the pandemic demand for sanitizers and masks were increased. So with data, you can predict where and when the demand would be high and low. There are some algorithms to do so.

Demand forecasting refers to the future estimation of a product. It is a process of evaluating demand of the product for future.

In other words, It is the process of estimating future course of action. It helps in taking a decision while producing the product.

Demand forecasting is the future prediction of demand for demand and service.