Demand Forecasting
Demand forecasting is a business process that uses historical data, statistical models, and market analysis to predict future customer demand for products or services. It helps organizations plan production, inventory, staffing, and financial strategies by estimating the quantity of goods or services that will be required over a specific period. This concept is widely applied in supply chain management, retail, manufacturing, and service industries to optimize operations and reduce costs.
Developers should learn demand forecasting when building applications for inventory management, e-commerce platforms, or logistics systems, as it enables data-driven decision-making and improves efficiency. It is crucial for implementing features like automated restocking, dynamic pricing, and resource allocation, helping businesses avoid stockouts or overstock situations. In roles involving data science or analytics, understanding demand forecasting allows developers to create predictive models that enhance business intelligence and operational planning.