Demand Forecasting Using AI and Machine Learning

nuaig_ai

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Demand forecasting is a significant application in the field of AI for all the businesses either it be retail or banking. In a study conducted by BCG and Google, the result shows AI advanced analytics in forecasting can help businesses achieve 10% higher revenue. Among all, demand forecasting is of utmost importance for a business growth and to lead the business at top.

Demand forecasting can help companies with business insights from the past data that can predict the demand of the market, it can include inventory, marketing needs, customer behavior. Business can understand the customer needs and thus based on forecasting can bring the right product when required. This can give customers a feeling of ease and enjoyment. Without a proper forecasting, unnecessary inventory or lack of inventory can affect the business sales.

Too much inventory can lead to a waste of products. With the digital world the trend often gets changed. Change in price of raw material and finished products often change. For Eatables proper inventory is utmost. Demand forecasting can save businesses from such economic loss.

Insufficient inventory Another issue can be insufficient inventory, when there is a demand in the market there should be an equivalent supplier to fulfill the demands. Due to lack of inventory customers can turn to competitors which will again lead to business loss.

Demand forecasting: is the use of historical data and insights to estimate the demand of goods and service in the current period or any specific period. A good demand forecasting algorithm can help business with economic and financial growth along with stability.

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