.svg)
Forecast horizon
Last Updated
October 7, 2025
What is a forecast horizon?
The forecast horizon is the length of time into the future for which forecasts are to be prepared. It is the time period over which a forecast is being made, and it can range from short-term horizons, such as a few days or weeks, to longer-term horizons, such as months or years.
FAQ
Why is the forecast horizon important?
The forecast horizon helps decision-makers understand the time frame for which they can rely on the forecasted information. It influences planning, resource allocation, inventory management, and strategic decision-making.
What are the different horizons?
- Short-term: A forecast horizon of up to 3 months, used for tactical planning and managing immediate operations.
- Medium-term: A forecast horizon of 3 to 12 months, used for medium-range planning and adjusting strategies.
- Long-term: A forecast horizon for more than 12 months, used for strategic planning, investment decisions, and long-term business goals.