Keeping the correct balance between supply and demand is one of the toughest obstacles in inventory management. To avoid stockouts that can annoy customers and overstocks that can tie up money, accurate demand forecasting is crucial. In this blog article, We'll look at the science and art of demand forecasting and how it's essential to efficient inventory control.

Techniques for Demand Prediction.

Examine several predicting methodologies for demand, such as qualitative, quantitative, and collaborative methods. Know when to apply each technique, as well as its benefits and drawbacks.

Data Sources

Examine the data sources, such as previous sales information, market analysis, customer feedback, and economic indicators, that help with effective forecasting

Forecast Accuracy

We'll talk about how to assess the reliability of your forecasts using metrics like Mean Absolute Percentage Error (MAPE) and the significance of monitoring forecast accuracy.

Inventory Replenishment

To avoid both stockouts and overstock, learn how to match your inventory replenishment tactics with your demand estimates. Examine lead times, safety stock, and reorder points.