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Forecast Horizon 1 Definition The future period of time for which a demand forecast is generated, typically as long as the longest single-item cumulative lead time (on a monthly planning basis) or for 2-5 year periods for strategic planning.
A forecast is a statement of the expected outcome of a given set of events. It follows then that a financial forecast is a statement of the expected outcome in fina â¦ ncial terms of a given set of (assumed) events. A budget is a financial forecast based on a plan set by management.