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Key Business Analytics by Bernard Marr

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36

Demand forecasting

What is it?

Demand forecasting is an area of predictive analytics that seeks to estimate the quantity of a product or service your consumers are likely to buy. As the name suggests, demand forecasting forecasts demand!

Demand forecasting goes beyond educated guesses and looks at historical sales data or current data from test markets. This type of analytic technique is used to direct pricing decisions, assessing future capacity requirements and making strategic decisions regarding new markets.

Why does it matter?

Demand forecasting matters because it provides knowledge on how demand for your products and services fluctuates over time. This data can then be used to manage inventory so that just the right amount of stock ...

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