A forecast that projects a company's sales is known as what type of forecast?

A forecast that projects a company's sales is termed a demand forecast. This type of forecast focuses specifically on estimating the quantity of product or service that customers are likely to purchase over a certain period. Understanding demand is critical for companies as it aids them in managing inventory levels, allocating resources efficiently, and planning production schedules.

Demand forecasts are typically based on historical sales data, market analysis, consumer behavior, and various influencing factors such as market trends and economic conditions. Accurate demand forecasting enables companies to align their supply chain operations effectively with anticipated consumer demand, thus minimizing costs associated with overproduction or stockouts.

In contrast, other types of forecasts, such as performance forecasts, relate more to the expected outcomes of organizational initiatives or objectives rather than specific sales figures. Supply forecasts pertain to the availability of materials or capacity to produce goods rather than customer demand, while market forecasts might focus on broader market trends rather than individual company sales predictions.