1. Demand forecasting forms the basis of supply chain planning as it allows managers to plan production, transportation, and other activities in anticipation of or in response to customer demand. 2. Forecasts can use qualitative methods like expert judgment or quantitative methods like time-series analysis of historical data to predict demand trends, levels, and seasonal variations. 3. The appropriate forecasting method depends on the forecast horizon, with short-term forecasts relying more on time-series analysis, medium-term using both time-series and causal models, and long-term relying more on judgment.

1. DEMAND FORECASTING