Effective demand forecasting allows businesses to make strategic decisions that can lead to increased profitability. Here are some key benefits:
Inventory Optimization: Helps in maintaining optimal inventory levels, reducing both overstock and stockouts. Cost Efficiency: Minimizes unnecessary expenses by aligning supply with demand. Customer Satisfaction: Ensures that products are available when customers need them, improving customer satisfaction. Resource Allocation: Aids in the efficient allocation of resources such as labor, production capacity, and finances.