ABSTRACT
Ideally, a company wants to produce just enough to meet consumer demand. Producing too much leads to excess inventories, and the selling price may need to be cut to reduce the costs associated with carrying inventory. Making too little means running out of stock and losing potential sales. To avoid these situations, companies anticipate demand and adjust operations accordingly. Forecasting is the art of predicting what future demand will be. Future demand is often difficult to predict, especially if demand fluctuates or if there are many external factors that affect consumer demand.
