What is a Forecast?
Forecast – An estimate of future demand. A forecast can be determined by mathematical means using historical data, it can be created subjectively by using estimates from informal sources, or it can represent a combination of both techniques.
Forecast Error – The difference between actual demand and forecast demand, stated as an absolute value or as a percentage.
Forecast Management – The process of making, checking, correcting, and using forecasts. It also includes determination of the forecast horizon.