What Is Forecasting?

The term Forecasting refers to the process of estimation, mostly in unknown circumstances and situations. The term Prediction refers to a similar phenomemon but prediction is a more general term. The term prediction is usually used to refer to estimation of cross sectional data,  time series data or longitudnal data. However, more recently in the past few years, Forecasting has evolved and developed into the practice of Demand Planning, especially in normal day to day business forecasting, particularly for manufacturing companies.

It has given rise to the discipline demand planning. The term demand planning is also sometimes referred to as supply chain forecasting. This method or discipline inlcudes both the processes statistical forecasting and the process of consensus process.
Forecasting is commonly and most often used in the discussion and analysis of time-series data.

Forecasting is usually used in the following situations:
• Supply chain management  or demand forcasting
• Forecasting of weather and Meteorology
• Transport planning and and forecasting of Transportation
• Economic forecasting for Countries, regions and businesses
• Technological forecasting
• Prediction of Earthquakes
• Forecasting of Land use
• Forecasting for Products  
• Forecasting  of Energy
• Prediction of Player and team performance in various sports