Demand planning is the process of forecasting future demand for products or services based on historical sales data, market trends, customer behavior, and other relevant factors.

The primary goal of demand planning is to anticipate customer demand accurately to ensure that the right quantity of products or services is available at the right time and place. This process involves analyzing past sales patterns, incorporating market intelligence, collaborating with sales and marketing teams, and leveraging advanced forecasting techniques, such as statistical models or machine learning algorithms, to generate forecasts.

Effective demand planning helps organizations optimize inventory levels, reduce stockouts and excess inventory, improve customer service levels, and enhance overall operational efficiency.