GlossaryEN1 min readUpdated: Jun 15, 2026
Demand Forecasting
Supply chain managers and logistics planners rely on demand forecasting to estimate future customer requirements and align inventory levels, production capacity, and transport resources accordingly.
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Source: https://en.wikipedia.org/wiki/Demand_forecasting
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Supply chain managers and logistics planners rely on demand forecasting to estimate future customer requirements and align inventory levels, production capacity, and transport resources accordingly. The process draws on historical sales data, market intelligence, seasonal patterns, and quantitative methods such as time series analysis or regression modelling. Accurate forecasts reduce both excess stock and stockouts – problems that erode working capital or service levels. Increasingly, traditional statistical methods are complemented by machine learning models capable of processing larger and more diverse data sets. All forecasts carry inherent uncertainty; demand forecasting is a planning discipline, not a predictive guarantee.
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