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Demand planning is a strategic process used by organizations to forecast and anticipate customer demand for their products or services. It involves analyzing historical data, market trends, and other relevant factors to estimate future demand accurately. The goal is to optimize inventory levels, production schedules, and resource allocation to meet customer needs while minimizing costs and maximizing profitability.

Demand planning helps companies make informed decisions about procurement, production, and distribution to ensure that sufficient stock is available at the right time and in the right place. It also enables organizations to respond effectively to changes in demand, reducing stockouts and excess inventory. By aligning supply with demand, demand planning helps businesses enhance customer satisfaction, streamline operations, and achieve their financial objectives.