What is the primary purpose of demand forecasting in logistics?

The primary purpose of demand forecasting in logistics is to anticipate customer demand and improve inventory management. By accurately predicting the quantity and timing of customer demand, companies can strategically plan their inventory levels to ensure they have the right products available at the right time. This helps to minimize stockouts and overstock situations, leading to a more efficient inventory management process.

Effective demand forecasting allows logistics professionals to align their supply chain operations with market needs, facilitating better planning of production schedules, reducing waste, and optimizing storage costs. A well-informed demand forecast directly impacts the entire supply chain, ensuring that products are transported and stored efficiently in response to actual market demand.

Other options focus on different aspects of logistics. Reducing transportation costs, for instance, is important but is typically a result of effective demand forecasting rather than its primary purpose. Designing the logistics network layout and creating export declarations are operational tasks that do not specifically relate to the central aim of anticipating demand, which drives overall efficiency in the logistics function.