Forecasting And Replenishment Definition

Forecasting and replenishment is the process of estimating future customer demand and ensuring that there are sufficient inventory levels to meet this demand. It is a critical part of supply chain management, as it helps to avoid stock outs and excess inventory.

There are a number of different methods that can be used for forecasting, including trend analysis, seasonality analysis, and regression analysis. The most appropriate method will depend on the data available and the nature of the product or service being provided. Once a forecast has been generated, replenishment can be planned accordingly. This may involve manufacturing more products or purchasing items from suppliers.

Good forecasting and replenishment planning can help to improve customer satisfaction levels and reduce costs associated with stock outs or excess inventory.