Demand Forecasting and Planning is the process of analyzing current and historical trends to predict future levels of customer demand. By creating accurate forecasts, businesses can better position themselves to meet customer needs while avoiding overstocking or under-stocking of inventory. Demand forecasting and planning requires sophisticated tools and data analysis, including predictive analytics and machine learning. The methods used must be tailored to each business model, product range, and customer base, ensuring that future sales forecasts accurately reflect the reality of a given market.