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Industrial Engineering & Manufacturing vocabulary · Production Planning and Control

Demand forecast

Meaning in industrial engineering & manufacturing, with examples

nounCore term

In industrial engineering & manufacturing, demand forecast means: An estimate of how many units customers will order in future periods, based on past sales, customer plans and market information.

In Turkish: talep tahmini

How it is used

The starting point of production and capacity planning. Sales and planning prepare, update and review the forecast, which may turn out too high or too low. Forecast accuracy is measured and discussed every month, often in S&OP meetings.

Example sentences

  1. The demand forecast for the summer models is 20% higher than last year.

  2. Our customer changed their demand forecast three times this month, which makes planning very hard.

Common collocations

  • rolling demand forecast
  • forecast accuracy
  • update the forecast
  • monthly demand forecast
  • master production scheduleA plan that states how many of each finished product will be made in each period, usually week by week, and drives material and capacity planning. Shortened to MPS.
  • capacityThe maximum amount a machine, line or plant can produce in a given time, for example 1,200 units per shift.
  • safety stockExtra stock kept on top of normal needs to protect against unexpected demand or supplier delays.
  • production scheduleA plan that shows which products will be made, in what quantity, on which line or machine and when, usually for the coming days or weeks.

More terms: Production Planning and Control

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