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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.
Meaning. Forecasting is a process of predicting or estimating the future based on past and present data. Forecasting provides information about the potential future events and their consequences for the organisation. It may not reduce the complications and uncertainty of the future.