Demand forecasting

Demand forecasting is when a business predicts future demand for its products.[1] A business looks at many things when they do demand forecasting. Some of these things are past sales, data from test markets, and statistics. Businesses can also use educated guesses to help predict future demand. Businesses use demand forecasting to help them come up with the amount of demand for their products so they know how much supply to make.[2]

Calculating demand forecast accuracy is the process of determining the accuracy of forecasts made regarding customer demand for a product.[3][4]

References

  1. ↑ "Demand Forecasting". Dell Software. Archived from the original on 24 March 2016. Retrieved 17 January 2016.
  2. ↑ Overview
  3. ↑ Hyndman, R.J., Koehler, A.B (2005) " Another look at measures of forecast accuracy", Monash University.
  4. ↑ Hoover, Jim (2009) "How to Track Forecast Accuracy to Guide Process Improvement", Foresight: The International Journal of Applied Forecasting.