Which of the following best describes the goal of demand forecasting?

The goal of demand forecasting is primarily focused on improving the accuracy of sales predictions. This process involves analyzing historical data, market trends, and other variables to estimate future demand for products or services. By achieving accurate sales forecasts, organizations can better align their inventory levels with anticipated sales, ensuring they have enough stock to meet customer needs without overstocking.

Improving sales predictions helps businesses make informed decisions regarding purchasing, production, and logistical planning. This accuracy ultimately leads to increased customer satisfaction by reducing instances of stockouts, which can occur when demand exceeds supply, as well as minimizing excess inventory, which ties up capital and can lead to higher holding costs.

While other options may relate to aspects of inventory management or logistics, they do not directly capture the fundamental objective of demand forecasting, which is to refine and enhance the precision of sales predictions to support better decision-making in supply chain operations.