What is Demand Forecasting?

A definition of Demand Forecasting

“Demand forecasting is the process of estimating the future demand for a product or service based on historical data and market analysis. It helps businesses make informed decisions about production and inventory levels.”

Demand Forecasting in Business Glossary - What is Demand Forecasting?

Business Glossary > What is Demand Forecasting?


Examples of Demand Forecasting in a Sentence:

Demand forecasting helps retailers optimize their stock levels.

Accurate demand forecasting can lead to reduced costs and improved sales.

Our company uses demand forecasting to predict holiday sales surges.

Why is Demand Forecasting Important in Business?

Understanding demand forecasting is crucial for businesses to manage production efficiently, reduce costs, and increase customer satisfaction. Accurate forecasts help in resource allocation and strategic planning, enabling companies to meet customer demands effectively.

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Associated Terms

Here are some associated business terms and synonyms for “Demand Forecasting”:

  • Sales Forecasting
  • Demand Planning
  • Market Prediction

Walmart Demand Forecasting

Walmart utilizes advanced demand forecasting techniques to ensure product availability while minimizing overstock. With its sophisticated data analytics, Walmart can predict customer needs months in advance, allowing for efficient inventory management and enhanced customer satisfaction.

Final Notes on Demand Forecasting

When implementing demand forecasting, companies should consider factors such as:

  • The quality of historical data
  • Market trends and seasonality
  • Technological tools available

These considerations help in achieving more accurate forecasts.


This has been a definition of Demand Forecasting meaning.

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