Demand forecasting is the process of estimating future demand for a product or service by analyzing historical sales data, market trends, customer behavior, and economic conditions. It helps organizations make informed business decisions regarding production, inventory, finance, and marketing activities.

In modern business management, demand forecasting has become an essential tool for achieving operational efficiency and maintaining customer satisfaction. Companies use forecasting methods to predict future sales, reduce uncertainty, and improve resource utilization.

Businesses in industries such as retail, manufacturing, banking, healthcare, and e-commerce depend heavily on demand forecasting to avoid overproduction or stock shortages. Accurate forecasting enables organizations to maintain a balance between supply and demand.