The Y-Intercept in forecasting models represents the starting value or baseline of a time series before accounting for trends or seasonal factors. In inventory demand forecasting, understanding the Y-Intercept helps establish the initial level of demand from which future growth or decline is measured.Accurate estimation of the Y-Intercept is critical for setting realistic inventory targets and avoiding overstocking or stockouts. It serves as a foundational parameter in linear regression and other quantitative forecasting techniques used in supply chain planning.
