A forecast is an educated guess that looks into the future and attempts to determine what and how much you are going to sell, towhom you are going to sell it, and when delivery will be required. Forecasting is used to project financial, personnel, production, material, and capacity needs beyond the immediate horizon. It helps develop a “single demand view” that an organization can use to plan its operations. If successful, it maximizes capacity, helps promote customer satisfaction, and helps you take advantage of market opportunities. Forecasting, A Tool for Performance Improvement