Demand forecasting is a systematic analytical process aimed to predict consumer demand for goods or services based on historical sales data.
Knowledge of future demand enables the supplier to keep the right amount of stock on hand and provide good customer service. Demand forecasting drives all companies' plans including demand, supply, purchasing, manufacturing, material requirements, and financial plans.
The accurate demand forecast is crucial for sustainable business development.
Inventory planning is a business process aimed to determine the optimal quantity and timing of inventory for the purpose of integration production capacity and sales. Inventory planning hugely influences a company’s turnover, cash flow, and profit margins.