Forecast

Category: Planning

Definition (plain English)

A quantified estimate of future demand, sales, or volume for a defined period, product, channel, and assumption set.

Why it matters commercially

Forecasts drive import buying, MOQ decisions, safety stock, cash planning, and whether the business risks stockouts or slow-moving inventory.

Example

A buyer cut the first order from a full container to mixed pallets because the launch forecast could not absorb the MOQ before shelf-life risk increased.

Common mistake

Treating a forecast as fixed demand instead of updating it with sell-through, lead-time changes, promotions, customer commitments, and forecast error.

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