How to determine when to use a best-fit analysis and when to use prediction techniques for demand forecasting analysis.
What is Demand Forecasting? Demand Forecasting is the process in which the historical sales data is used to develop an estimate of expected forecast of customer demand.
In an ideal world, demand and supply would be steady and predictable, resulting in optimal capacity utilization and no back orders or missed customer orders. However, in the actual supply chain world variations in actual sales vs. projected sales result in lower forecast accuracy, and either overstocking or stock out situations.