How does machine learning work in demand forecasting?

Can you explain how machine learning is used in demand forecasting?

Sure! Machine learning analyzes historical data to identify patterns and trends, helping predict future demand.

What types of data are typically used for this forecasting?

Common data includes sales history, seasonal trends, economic indicators, and even social media sentiment.

How accurate are these predictions compared to traditional methods?

Machine learning models can significantly improve accuracy by adapting to new data and uncovering complex patterns.

Are there specific algorithms that are commonly used?

Yes, algorithms like time series analysis, regression models, and neural networks are frequently used in demand forecasting.