Demand_____

• A. Forecast
• B. Forecasting
• C. Demand
• D. Inventory

Answer: (C)

Predicting future customer demand to plan inventory and capacity is the key idea. In practice, the phrase that describes this activity is built by pairing demand with a forecasting term. The standard way to express this in supply chain discussions is demand forecasting (the process) or the demand forecast (the result). A demand forecast is a projection of what customers will buy in a future period, and it guides how much product to produce, order, or hold in stock. Understanding this connection helps you see why forecasting demand is essential for balancing service levels with inventory costs—accurate forecasts reduce stockouts and excess inventory while aligning operations with expected demand.