Demand planning, also known as inventory (merchandise) planning and forecasting, is the process of calculating consumer interest in order to understand the right quantity and types of goods to purchase, at the right time for the right place. 

The goal is to buy inventory at a low cost with the intent of selling it at a higher cost at a later time in order to make a profit. The challenge of course lies in knowing how much to buy and when. That's where planning comes in. Accurate inventory planning can play a critical role in improving your cash flow and scaling your business.

If you’re part of a business that orders inventory, then this guide will help you optimize your inventory.