Can you explain the importance of demand forecasting?
Demand forecasting is a critical process in supply chain management. It involves predicting future customer demand for products or services based on historical data, market trends, and other influencing factors. Here's why it's essential:
1. Optimizes Inventory Levels
2. Reduces Operational Costs
3. Enhances Customer Satisfaction
4. Improves Production Planning
5. Supports Financial Planning
6. Strengthens Supplier Relationships
7. Helps in Market Strategy Development
8. Enables Risk Mitigation
9. Facilitates Long-Term Planning
