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Demand forecasting

Overview

Demand forecasting specifically focuses on predicting future demand for products or items based on historical sales data, market trends, customer behaviour, and other influencing factors.

The goal of demand forecasting in Dynamics 365 aims to generate accurate and reliable estimates of future demand, enabling organisations to plan their supply chain operations, stock management, and production activities accordingly. Dynamics 365 provides built-in demand forecasting functionality, allowing users to configure and utilise various forecasting models and algorithms to generate forecasts. These models can range from simple techniques like moving averages and linear regression to more sophisticated methods such as seasonal indexes, exponential smoothing, or advanced machine learning algorithms.

Dynamics 365 utilises historic demand data to generate forecasts for future time periods. Consequently, the accuracy of the forecasts is directly influenced by the accuracy of the historic data provided. These forecasts can be at different levels of granularity, such as individual products, product variants, product families, or other defined hierarchies.

Learning with Microsoft

Further information related to demand forecasting can be found on Microsoft Learn via the URL below.

Demand forecasting overview – Supply Chain Management | Dynamics 365 | Microsoft Learn