An accurate inventory forecast is invaluable, especially when supply chains and consumer demand are changing rapidly. Getting forecasts right requires a complex mix of statistical and mathematical data analysis, experience with the business and customer insights. It also requires people who can make data-informed predictions based on factors that could cause a dip or spike in future demand. Some factors are major, some peripheral. Some could make an entire season, while some have only a mild effect. 

Technically speaking, inventory forecasting, also known as demand planning, is the practice of using data on trends and both past and upcoming events to predict the amount of inventory needed to meet future demand. Accurate forecasting ensures businesses have enough product to fulfill customer orders and that they do not spend too little or too much on inventory