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Demand planning is the process of analyzing, evaluating and projecting the future requirements of customers within an IT environment. Demand planning deals with the overall use of IT infrastructure and resources by customers or external users and aims to predict future demand accordingly.
Demand planning is primarily an IT supply chain management technique used to help IT administrators and managers to predict what IT resources will meet the current demand. Typically demand planning is used in product-oriented IT companies to ensure that the product development or production meet the demand of the users.
Demand planning uses statistical analysis, best practices, and past and current demand cycles to evaluate future customer demand. It also serves as an input to capacity planning to provision required IT resources based on current and expected future demand.