Passive Demand Forecasting

Passive demand forecasting is a method of predicting customer demand based on existing data without actively influencing or changing factors that affect that demand. This approach relies on historical sales data, market trends, and observed consumer behavior to estimate future demand. Essentially, it looks at what has happened in the past to anticipate future needs, allowing businesses to prepare for expected sales without trying to create or manipulate demand directly. This method is useful for inventory management, resource planning, and budgeting, as it helps businesses align their operations with anticipated customer preferences.