Forecasting in supply chain is the process of predicting future demand for products and services. It is an essential part of supply chain management, as it helps organizations to plan and allocate resources to meet customer needs. Forecasting also helps to reduce the risk of overstocking or understocking, as well as enabling businesses to make informed decisions about pricing, production, and inventory levels. Forecasting can be done using a variety of methods, such as time series analysis, regression analysis, and Monte Carlo simulation. The goal of forecasting is to accurately predict future demand, so that organizations can better plan and manage their supply chain operations. By doing so, businesses can reduce costs, improve customer service, and increase profitability.
