demand forecasting

Syllable breakdown

Dictionary meaning

the process of predicting future customer demand for a product or service using historical data, market trends, statistical models, and qualitative judgment; drives production planning, inventory decisions, and procurement; methods range from simple moving averages to machine learning models; forecast accuracy is measured by metrics such as mean absolute percentage error (MAPE)

Examples

• Inaccurate demand forecasting led to millions in unsold holiday inventory.
• Machine learning has significantly improved demand forecasting accuracy in retail.

American: 'FOR-kas-ting'; British: 'FAW-kah-sting'.

Synonyms: sales forecasting, demand planning