Quantitative forecasting uses mathematical and statistical models to predict future demand based on historical data and measurable factors. Common techniques include moving averages, exponential smoothing, regression analysis, and time-series decomposition. Quantitative methods provide objective, data-driven forecasts that support inventory planning and replenishment decisions.While quantitative forecasting excels in stable and data-rich environments, it may struggle to capture sudden market shifts or qualitative factors like promotions or competitor actions. Combining quantitative forecasts with qualitative insights can improve accuracy. Accurate forecasting is fundamental to optimizing inventory levels, reducing stockouts, and minimizing carrying costs.
