Objective of Demand Forecasting

The objective of demand forecasting is to predict the future demand for a product or service. This is important for businesses to plan their production, inventory, and supply chain management effectively. By accurately forecasting demand, companies can avoid stockouts or excess inventory, optimize their resources, and make informed decisions about pricing, promotions, and product development. Demand forecasting helps businesses to meet customer demands, improve customer satisfaction, and ultimately increase profitability.