# Demand Forecast

The Demand Forecast tool provides a view of expected stock consumption for each product. It is designed to help managers anticipate stock requirements, reduce risk of running out of key items, and make more informed purchasing decisions.

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## How the Forecast Works

The forecast is generated from historical sales activity and manufacturing jobs.&#x20;

{% hint style="warning" %}
Stock transfers between locations are not included in the forecast.
{% endhint %}

The forecast analyses the previous 6 weeks of data. For each product, the system calculates the median consumption for each day of the week across the 6-week window. More recent weeks are given more weight. This means that if patterns have shifted in the recent weeks, the forecast will reflect that change.

The system also detects whether demand is trending up or down, and factors this into the forecast. This is shown as the Trend Factor in the report.


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