The process of projecting future consumer demand for a good or service over a given time frame is known as demand forecasting. By assisting businesses in matching inventory levels with anticipated sales, it plays a crucial part in inventory optimization. Precise demand forecasting lowers the possibility of overstocking or stockouts, facilitates effective resource allocation, and improves customer satisfaction. Historical sales data, market trends, seasonality, promotional strategies, and statistical models can all be used to create forecasts. Machine learning algorithms are used in advanced forecasting to make more dynamic, real-time adjustments.
