DEMAND FORCASTING USING ML

Abstract

Demand forecasting plays a vital role in modern business organizations by helping companies predict future product demand and optimize inventory management. Accurate forecasting enables businesses to reduce operational costs, improve customer satisfaction, and increase profitability. Traditional forecasting methods mainly rely on historical sales analysis and statistical calculations, which often fail to handle complex market patterns and rapidly changing customer behavior. With the advancement of Artificial Intelligence and Machine Learning technologies, businesses can now develop intelligent systems capable of generating more accurate and reliable demand predictions. The proposed Demand Forecasting Using Machine Learning system utilizes machine learning algorithms to analyze historical sales data, customer purchasing patterns, seasonal trends, and market conditions. The system applies data preprocessing, feature extraction, and predictive modeling Int. J. Engg. Res. & Sci. & Tech. 2026, ISSN 2319-5991 Vol. 22, No. 2, 2026 https://ijerst.org/index.php/ijerst 2914 techniques to forecast future product demand effectively. Algorithms such as Linear Regression, Random Forest, Decision Tree, and Support Vector Machine are used to improve forecasting accuracy and identify hidden market trends. The machine learning-based forecasting system helps organizations automate inventory planning, reduce product shortages, and minimize excess stock. The system continuously learns from newly generated data, allowing it to adapt to changing market environments and consumer behavior. Real-time forecasting capabilities also support better supply chain management and business decisionmaking processes. Experimental analysis shows that the proposed machine learning approach provides higher prediction accuracy compared to traditional forecasting methods. The implementation of intelligent forecasting systems improves operational efficiency and enhances overall business performance. Therefore, the proposed system offers a scalable, reliable, and efficient solution for demand forecasting in various industries such as retail, manufacturing, e-commerce, and logistics. Keywords: Demand Forecasting, Machine Learning, Predictive Analytics, Inventory Management, Artificial Intelligence, Sales Prediction, Business Intelligence.