In logistics planning, it is important to identify and predict the occurrence of demand for a company's products and services. Demand Forecasting refers to the process of determining how the company will meet such demand. Demand forecasting typically involves the analysis of historical sales data, market trends, customer behavior, and other relevant factors. By analyzing this data, logistics professionals can develop models to predict future demand for a particular product or service, taking into account factors such as seasonal fluctuations, market trends, and changes in customer behavior. Once demand forecasts are developed, logistics professionals can use this information to plan inventory levels, optimize transportation routes, and coordinate production schedules to meet anticipated demand. By accurately predicting future demand, logistics companies can avoid stockouts and minimize excess inventory, which can reduce costs and improve customer satisfaction.
Source : ChatGPT