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Showing posts from December, 2019

An Introduction to Demand Forecasting

                                                                  Demand Forecasting is a fancy topic not just because it gives you psychic powers to know the future demand but also because it is an important part of the supply chain process since all the subsequent phases of supply chain are dependent on it. A key part of supply chain planning involves demand planning and the associated demand forecasting process. Forecasting is one of the three components of an organization - Demand Planning, Demand Forecasting and Demand Management process. Demand Planning helps us to find what we should do to shape and create demand for our product (Production, Packaging, Pricing, Planning, etc.). Forecasting helps us to find the upcoming demand and confirm whether a plan is in place to deliver. Demand management helps us to prepare for and act on the demand when it materializes (Sales and Operation Planning).                                      Demand Supply Gap in Business