Point forecast

What is a point forecast?

A point forecast is a single estimate or prediction of a future value or event. It is a specific numerical value that represents the expected outcome of a forecasting model or method. This type of forecast is often used as a basis for decision-making, scheduling production, or allocating resources.

Here’s an example

If a demand planning model predicts that the demand for a particular product will be 100 units in the next month, then 100 units is the point forecast for that given period.