Demand forecasting uses AI and machine learning to help businesses predict customer demand. It analyzes past data to forecast market demand, inventory needs, and customer behavior. Accurate forecasting is important for business growth by ensuring the right level of inventory and meeting customer needs. Both qualitative prediction based on experience and quantitative prediction using mathematical models on historical data can be used for demand forecasting.

1. DEMAND FORECASTING
USING AI AND
MACHINE LEARNING
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2. WHAT IS DEMAND
FORECASTING?
Demand forecasting is a significant application in the field of AI for all the
businesses either it be retail or banking. In a study conducted by BCG and
Google, the result shows AI advanced analytics in forecasting can help
businesses achieve 10% higher revenue. Among all, demand forecasting is
of utmost importance for a business growth and to lead the business at
top.
Demand forecasting can help companies with business insights from the
past data that can predict the demand of the market, it can include
inventory, marketing needs, customer behavior. Business can understand
the customer needs and thus based on forecasting can bring the right
product when required. This can give customers a feeling of ease and
enjoyment.
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3. WITHOUT A PROPER
FORECASTING,
UNNECESSARY
INVENTORY OR LACK
OF INVENTORY CAN
AFFECT THE
BUSINESS SALES.
TOO MUCH INVENTORY
It can lead to a waste of products. With the
digital world the trend often gets changed.
Change in price of raw material and finished
products often change. For Eatables proper
inventory is utmost.
INSUFFICIENT INVENTORY
Another issue can be insufficient inventory,
when there is a demand in the market there
should be an equivalent supplier to fulfill the
demands. Due to lack of inventory customers
can turn to competitors which will again lead to
business loss.
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4. THE
IMPORTANCE
OF DEMAND
FORECASTING
COST REDUCTION AND EFFICIENCY
IMPROVEMENT
In today’s increasingly fierce market competition, the era of
brutal and explosive growth in all walks of life is gradually
gone. Refined operation, cost reduction and efficiency
improvement are the general trend, and it is even more
important for the retail industry whose gross profit margin
itself is not very high. The top priority.
ENHANCE CUSTOMER EXPERIENCE
Good customer experience can assure loyalty of customers
and also bring a good reputation to the business. The most
obvious is this: Avoid leaving customers empty-handed, or
pushing your competitors to buy similar products, this is one
of the most effective ways to please customers.
By NuAIg - https://www.nuaig.ai/

5. Demand
forecasting
methods
QUALITATIVE
PREDICTION
QUANTITATIVE
PREDICTION
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6. Demand forecasting
can be divided into:
QUALITATIVE PREDICTION
This requires that the forecaster is familiar with
business knowledge, has rich industry experience
and comprehensive analysis capabilities, and uses
personal experience and analytical judgment
based on the historical data and intuitive
materials that have been mastered to make
qualitative and degree of future development of
things. judgment.
QUANTITATIVE FORECASTING
Quantitative forecasting method is based on
relatively complete historical statistical data in the
past, using various mathematical models to make
quantitative calculations on the future development
trend of the market to obtain forecast results. This
type of method helps to grasp the boundaries of the
volume of things on the basis of qualitative analysis,
and helps companies make more correct decisions.
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7. REDUCE THE
AMOUNT OF
INVENTORY
REDUCE THE
RISK OF SCRAP
SEIZE SALES
OPPORTUNITIES
ANTICIPATE
CUSTOMER
NEEDS
GUIDE STAFF
ALLOCATION,
OPTIMIZE SHIFT
SCHEDULING
GUIDE
PRODUCTION
SCHEDULING
AND
DISTRIBUTION
APPLICATION SCENARIOS OF DEMAND FORECASTING
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8. INSPIRATIONQUOTE:
"Forecasting is the art
of saying what will
happen, and then
explaining why it
didn't! "
--ANONYMOUS (COMMUNICATED BY BALAJI
RAJAGOPALAN)
By NuAIg - https://www.nuaig.ai/

9. GET IN TOUCH
WITH US
MAILING ADDRESS
515 Plainfield Avenue, Suite
2,Edison NJ 08817
PHONE NUMBER
+1 732 328 8205
E-MAIL ADDRESS
info@nuaig.ai
By NuAIg - https://www.nuaig.ai/