What is the difference between demand forecasting and demand planning?

Demand forecasting focuses on projecting future sales volumes using data and statistical analysis. It is one component of demand planning.

Demand planning, on the other hand, uses these forecasts as a foundation and involves coordinating with other departments (production, procurement, sales) to build a concrete action plan.

In simple terms: demand forecasting provides the "what" (what might be sold), while demand planning defines the "how" to respond to it.

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