Manufacturers must anticipate future demand for products in order to plan resources to meet the demand which is not confirmed by customer orders
Only independent demand needs to be forecasted
Forecasts, by definition, are typically wrong but necessary
Therefore, forecast accuracy is a key measurement, and it depends upon:
Horizon: the further away you have to forecast, the less accurate it tends to be.
Level of Aggregation: the more specific your forecast needs to be, the less accurate it tends to be;
Forecast at family rather than item level