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Supply Chain Glossary

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Demand Forecasting


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

The process of estimating the quantity of a product or service that will be purchased is called ‘demand forecasting’.  Traditional approaches to demand forecasting were often informal, but contemporary information systems frequently employ more formal and quantitative methods.  Sharing demand forecasts with suppliers is a key to matching supply and demand and helps reduce system-wide inventory.  See also Supply Chain Management.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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