Demand forecasting in its simplest form is the prediction of what your production needs of customers will be, and what demand for supply of components, parts, sub-assemblies or final assemblies are needed to avoid stock-outs, to sync with production flow. The inputs from your engineering, product development, operations and production team can be considered “stakeholders” in the outcome. For M-Wave, the periodic usage and our demand stocking requirements are the result of a collaboration of the relevant parties to the internal supply chain information and requirements. We and our Asian partners focus on that information and its effect to planning external supply chain, to ensure a positive outcome.
As a matter of reference determination of the demand forecasts is done generally through these steps: