Forecasting demand is the process of predicting future customer demand for a product or service based on historical data, trends, and analysis. This process helps businesses make informed decisions about production, inventory management, and resource allocation, ensuring that they can meet customer needs while minimizing costs. By utilizing statistical methods and models, such as ARIMA, companies can enhance their forecasting accuracy and better prepare for fluctuations in demand.
congrats on reading the definition of forecasting demand. now let's actually learn it.