According to the Seven Steps in Forecasting, what is the first step?

The first step in the Seven Steps in Forecasting is to determine the use of the forecast. This is crucial because understanding the purpose and application of the forecast sets the stage for all subsequent steps. By identifying how the forecast will be used—whether for inventory management, financial planning, capacity management, or other operational decisions—organizations can tailor their approach to meet specific needs and requirements. This step ensures that the forecasting process aligns with organizational goals and helps to focus on relevant data and methods, leading to more accurate and actionable results. Each use case may also dictate the type of forecast needed, the time horizon, and the level of detail required, making this initial assessment vital for effective forecasting.