Demand forecasting is a research area that focuses on predicting future demand for products or services. This involves analyzing historical sales data, market trends, and external factors such as economic conditions, customer preferences, and competitive landscape to forecast future demand levels accurately. Demand forecasting helps businesses optimize inventory levels, plan production schedules, and make informed decisions regarding pricing and marketing strategies. It plays a crucial role in the overall supply chain management process and can significantly impact a company's profitability and competitiveness.