1. Long-term forecasts look ahead several years – the time needed to build a new factory or organize new facilities. They usually look at overall demand, so a brewery might forecast total demand of 10,000 barrels a day in three years’ time. This gives enough information to plan budgets and major facilities over the next few years.
2. Medium-term forecasts look ahead between three months and a year – the time needed to replace an old product by a new one or organize resources. The brewery above, for example, might forecast 1,000 barrels a day of bitter, over the next year, and use this to plan production and associated facilities.
3. Short-term forecasts cover the next few weeks – describing the continuing demand for a product or scheduling operations. Again, the brewery might forecast 10 barrels of premium bitter needed by the Red Star Pub, and use this to schedule deliveries and stock movements.