Probabilistic Forecasting

What is Probabilistic Forecasting?

Probabilistic forecasting is used in supply chain demand forecasting to improve accuracy and resiliency by envisioning a range of possible future outcomes.

Why is Probabilistic Forecasting important?

Modern supply chains benefit from probabilistic forecasting because it help account for uncertainty and the probability of various outcomes to create a more realistic forecast, resulting in better risk mitigation and inventory positioning versus static single-point estimates.