Demand forecasting in operations management is the process of predicting future customer demand based on past and current business patterns, trends, and market conditions. It’s an essential component of any successful business plan as it helps to anticipate customer needs and provide the right number of products and services at the right time. With demand forecasting, businesses can maximize efficiency while avoiding costly overproduction or underproduction. By taking a data-driven approach, companies can make informed decisions that are rooted in evidence and improve their competitive advantage.