Whats the difference between the terms Sales and Demand Whic

What\'s the difference between the terms Sales and Demand? Which one do you prefer to use when forecasting. Please provide an example.

Solution

The difference between Sales and Demand is that sales refers to the number of items being sold in a particular month or a year, whereas Demand refers to the demand of products of the company in a month or a year. While forecasting of both sales and demand is quite important, but I would prefer to use demand forecasting, because I feel it’s based on the demand forecasting sales strategy can be made on how to sell those products. For example, if X company wants to sell its product Y, it needs to forecast the demand first. If the company forecast the demand for that product is 1000 units, then only the company will be able to make appropriate strategies to sell product Y.