Demand Forecasting with Python
Demand forecasting is a critical process in operations management, enabling you to anticipate future customer demand and plan resources efficiently. Accurate forecasts help you avoid stockouts, minimize excess inventory, and optimize staffing, leading to improved service levels and reduced costs. By leveraging Python, you can analyze historical sales data, identify demand patterns, and automate the forecasting process, making your operations more responsive and data-driven.
1234567891011121314151617import pandas as pd # Sample historical sales data data = { "date": [ "2024-06-01", "2024-06-02", "2024-06-03", "2024-06-04", "2024-06-05", "2024-06-06", "2024-06-07" ], "sales": [120, 135, 128, 140, 130, 125, 138] } df = pd.DataFrame(data) df["date"] = pd.to_datetime(df["date"]) # Calculate average daily demand average_daily_demand = df["sales"].mean() print(f"Average daily demand: {average_daily_demand:.2f}")
Simple forecasting techniques, such as moving averages, are commonly used to predict future demand based on historical trends. A moving average smooths out fluctuations by calculating the average of sales over a specific window, such as the past three or four weeks. In Python, you can easily implement moving averages using pandas, allowing you to generate rolling forecasts and adjust your operations proactively.
12345678910111213141516171819import pandas as pd # Sample weekly sales data for the past 6 weeks data = { "week": [ "2024-05-05", "2024-05-12", "2024-05-19", "2024-05-26", "2024-06-02", "2024-06-09" ], "sales": [820, 860, 810, 890, 870, 840] } df = pd.DataFrame(data) df["week"] = pd.to_datetime(df["week"]) # Calculate 3-week moving average df["3_week_moving_avg"] = df["sales"].rolling(window=3).mean() # Predict next week's demand using the latest moving average predicted_next_week = df["3_week_moving_avg"].iloc[-1] print(f"Predicted demand for next week: {predicted_next_week:.2f}")
1. Why is demand forecasting important for operations managers?
2. What is a moving average and how is it used in forecasting?
3. How can Python automate the forecasting process?
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Demand Forecasting with Python
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Demand forecasting is a critical process in operations management, enabling you to anticipate future customer demand and plan resources efficiently. Accurate forecasts help you avoid stockouts, minimize excess inventory, and optimize staffing, leading to improved service levels and reduced costs. By leveraging Python, you can analyze historical sales data, identify demand patterns, and automate the forecasting process, making your operations more responsive and data-driven.
1234567891011121314151617import pandas as pd # Sample historical sales data data = { "date": [ "2024-06-01", "2024-06-02", "2024-06-03", "2024-06-04", "2024-06-05", "2024-06-06", "2024-06-07" ], "sales": [120, 135, 128, 140, 130, 125, 138] } df = pd.DataFrame(data) df["date"] = pd.to_datetime(df["date"]) # Calculate average daily demand average_daily_demand = df["sales"].mean() print(f"Average daily demand: {average_daily_demand:.2f}")
Simple forecasting techniques, such as moving averages, are commonly used to predict future demand based on historical trends. A moving average smooths out fluctuations by calculating the average of sales over a specific window, such as the past three or four weeks. In Python, you can easily implement moving averages using pandas, allowing you to generate rolling forecasts and adjust your operations proactively.
12345678910111213141516171819import pandas as pd # Sample weekly sales data for the past 6 weeks data = { "week": [ "2024-05-05", "2024-05-12", "2024-05-19", "2024-05-26", "2024-06-02", "2024-06-09" ], "sales": [820, 860, 810, 890, 870, 840] } df = pd.DataFrame(data) df["week"] = pd.to_datetime(df["week"]) # Calculate 3-week moving average df["3_week_moving_avg"] = df["sales"].rolling(window=3).mean() # Predict next week's demand using the latest moving average predicted_next_week = df["3_week_moving_avg"].iloc[-1] print(f"Predicted demand for next week: {predicted_next_week:.2f}")
1. Why is demand forecasting important for operations managers?
2. What is a moving average and how is it used in forecasting?
3. How can Python automate the forecasting process?
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