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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.
Forecasting is the process of making predictions of the future based on past and present data and analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date.Prediction is a similar, but more general term.uantitative forecasting models are used to forecast future data as a function of past data. They are appropriate to use when past numerical data is available and when it is reasonable to assume that some of the patterns in the data are expected to continue into the future.