Definition · forecasting
Demand forecasting
Demand forecasting is the practice of estimating future customer demand for products or services to guide supply and capacity. For demand forecasting, a useful definition states estimating future customer demand for products or services to guide supply and capacity, the source data, owner, timing, evidence, and decision it supports before teams rely on it.
Also known as demand planning
Why it matters
Understanding demand forecasting matters because leaders need a shared, source-backed meaning before they can compare results, explain performance, or decide what to do next. When the term is tied to a source system, owner, and review cadence, it becomes easier to audit assumptions, catch changes early, and keep operators aligned.
In practice
Operating example
Demand forecasting is useful when teams need a shared interpretation of estimating future customer demand for products or services to guide supply and capacity. The definition should make source data, timing, ownership, and the decision it supports explicit.
Review example
Demand forecasting should be reviewed whenever the source system, calculation logic, time period, or decision owner changes. That keeps the definition useful instead of letting it drift into a label.
In practice, teams should define demand forecasting with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding demand forecasting matters because leaders need a shared, source-backed meaning before they can compare results, explain performance, or decide what to do next. When the term is tied to a source system, owner, and review cadence, it becomes easier to audit assumptions, catch changes early, and keep operators aligned.
A strong workflow for demand forecasting separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
FAQ
What is demand forecasting?
Demand forecasting is the practice of estimating future customer demand for products or services to guide supply and capacity. For demand forecasting, a useful definition states estimating future customer demand for products or services to guide supply and capacity, the source data, owner, timing, evidence, and decision it supports before teams rely on it.
How is demand forecasting different from revenue forecasting?
The boundary for demand forecasting differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers estimating future customer demand for products or services to guide supply and capacity, so teams should compare those boundaries before using it in reporting or planning.