Market demand forecasting refers to predicting future customer demand based on historical sales data, market trends, and external variables such as seasonality or economic indicators. It is a critical function in inventory and supply chain planning. Accurate demand forecasts enable businesses to plan inventory replenishment, production, and logistics more effectively. Poor forecasting can lead to stockouts or excess inventory, both of which negatively impact financial performance and customer satisfaction. Advanced forecasting models use AI and machine learning to detect demand shifts and anomalies. Inventory optimization platforms integrate demand forecasts to calculate reorder points, safety stock, and procurement schedules with higher accuracy.
