Demand Forecasting
Demand Forecasting is a business planning tool that helps companies predict how much of their products or services customers will want in the future. It's like having a crystal ball that uses past sales data, market trends, and customer behavior to make educated guesses about future sales. This helps online businesses decide how much inventory to stock, how many staff to hire, and how to plan their budgets. For example, it helps prevent situations where popular items go out of stock (understocking) or where too much money is tied up in products that aren't selling well (overstocking). This is especially important for online marketplaces where customer satisfaction depends heavily on product availability and quick delivery.
Examples in Resumes
Improved inventory efficiency by 30% using Demand Forecasting techniques for an online marketplace
Led implementation of Demand Forecasting models that reduced stockouts by 45%
Developed Demand Planning strategies for seasonal product categories
Applied Demand Prediction algorithms to optimize warehouse operations
Typical job title: "Demand Forecasting Analysts"
Also try searching for:
Where to Find Demand Forecasting Analysts
Professional Networks
Job Boards
Learning Resources
Example Interview Questions
Senior Level Questions
Q: How would you handle demand forecasting for a new product launch with no historical data?
Expected Answer: A strong answer should discuss using similar product data, market research, competitor analysis, and customer surveys to make initial predictions, then adjusting based on early sales data.
Q: Describe a time when you improved a company's forecasting accuracy. What methods did you use?
Expected Answer: Look for examples of implementing new forecasting tools, combining different forecasting methods, and showing measurable improvements in accuracy through specific metrics.
Mid Level Questions
Q: How do you account for seasonal trends in demand forecasting?
Expected Answer: Should explain how they analyze past seasonal patterns, special events, and promotional impacts to adjust forecasts accordingly.
Q: What factors do you consider when creating a demand forecast?
Expected Answer: Should mention historical sales, market trends, promotional activities, competitor actions, and external factors like weather or economic conditions.
Junior Level Questions
Q: What is the difference between qualitative and quantitative forecasting methods?
Expected Answer: Should explain that qualitative methods use expert opinions and market research, while quantitative methods use historical data and statistical analysis.
Q: How do you measure forecasting accuracy?
Expected Answer: Should be able to explain basic accuracy metrics like forecast error and the importance of tracking actual versus predicted demand.
Experience Level Indicators
Junior (0-2 years)
- Basic data analysis and Excel skills
- Understanding of supply chain concepts
- Knowledge of basic forecasting methods
- Report creation and data visualization
Mid (2-5 years)
- Advanced forecasting techniques
- Statistical analysis skills
- Experience with forecasting software
- Understanding of inventory management
Senior (5+ years)
- Strategic planning expertise
- Team leadership experience
- Advanced modeling techniques
- Cross-functional collaboration skills
Red Flags to Watch For
- No experience with data analysis tools or Excel
- Lack of understanding of basic supply chain concepts
- Poor mathematical or statistical background
- No experience with forecasting software or tools
- Unable to explain how forecasting impacts business decisions
