What is the time frame for medium-range forecasts?

Medium-range forecasts typically span a period of 6 to 18 months. This time frame is crucial for businesses as it allows for effective planning in areas such as production scheduling, workforce management, and inventory planning. During this range, organizations can anticipate fluctuations in demand and make necessary adjustments to meet customer needs, thus optimizing resource allocation and minimizing costs.

Forecasts shorter than six months are generally considered short-range, which focus on immediate operational decisions, while forecasts extending beyond 18 months often fall into the long-range category, dealing with strategic planning and long-term goals. Using medium-range forecasts effectively helps in bridging the gap between immediate operational needs and long-term strategic planning.