// ROBOTICS AND SMART FACTORIES TERM
Demand Forecasting
Demand forecasting is the process of predicting future customer demand for a product or service, often using historical data and statistical methods.
TECHNICAL DEFINITION
Demand forecasting, a crucial supply chain planning activity, employs statistical models, historical sales data, and market intelligence to predict future customer demand for products, optimizing inventory and production.
BACKGROUND
Demand forecasting, also known as demand planning and sales forecasting (DP&SF), involves the prediction of the quantity of goods and services that will be demanded by consumers or business customers at a future point in time, conditional on a specified forecast horizon and information set. More specifically, the methods of demand forecasting entail using predictive analytics to estimate customer demand in consideration of key economic conditions. This is an important tool in optimizing business profitability through efficient supply chain management. Demand forecasting methods are divided into two major categories, qualitative and quantitative methods:Qualitative methods are based on expert opinion and information gathered from the field. This method is mostly used in situations when there is minimal data available for analysis, such as when a business or product has recently been introduced to the market. Quantitative methods use available data and analytical tools in order to produce predictions.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Sales prediction
- market forecasting
- demand planning
- sales forecasting
USAGE NOTE
Accurate demand forecasting is essential for efficient inventory management and production scheduling.
DEVELOPERS
Organizations developing technology related to Demand Forecasting.
A global leader in enterprise software, SAP offers SAP Integrated Business Planning (IBP) and advanced analytics solutions that include sophisticated demand forecasting for manufacturing and supply chains, leveraging AI and machine learning for predictive insights.
Provides comprehensive cloud-based supply chain management (SCM) solutions, including Oracle Fusion Cloud SCM which features AI/ML-driven demand forecasting capabilities to help manufacturers predict future demand accurately and optimize operations.
Specializes in concurrent planning for supply chains, enabling real-time demand forecasting, scenario planning, and supply chain optimization in complex manufacturing environments to improve responsiveness and resilience.
A leading provider of AI-driven supply chain and commerce solutions, offering robust demand planning and forecasting tools specifically designed for manufacturing, retail, and logistics to improve prediction accuracy and inventory management.
Operates a cloud-based network for global supply chains, providing demand sensing, forecasting, and inventory optimization solutions that connect trading partners across the manufacturing ecosystem for better collaborative planning.
Offers an AI-powered 'digital brain' platform for integrated business planning, with strong capabilities in demand forecasting, scenario modeling, and supply chain optimization for various industries, including manufacturing.
Known for its advanced analytics and AI platforms, SAS provides powerful statistical and machine learning-based solutions for accurate demand forecasting, helping manufacturers predict future demand with greater precision and manage volatility.
Part of Microsoft's business applications suite, it offers integrated demand forecasting features leveraging AI to help manufacturers predict customer demand, optimize production schedules, and manage inventory efficiently within Industry 5.0 contexts.