What does Demand forecast mean?
A demand forecast estimates future activity using stated assumptions and available evidence. It is different from confirmed orders and should not be presented as guaranteed sales.
Why it matters
Use relevant past consumption, upcoming renewals and known changes to build a proportionate estimate. Note where an unusual event or promotion affected the history. Compare more than one scenario rather than treating the busiest period as normal. A forecast can support planning, but commercial purchases still need confirmed supplier terms and an assessment appropriate to the business.
A practical example
For example, a reseller may distinguish twenty confirmed renewals from an estimate of ten possible new customers. Only the former are already committed activity. Keeping the categories separate helps assess a top-up request without pretending a larger credit balance will itself produce the estimated new demand.
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Related terminology: Deinterlacing, Descriptive transcript.
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