The demand forecasting is one of the major traits of the lean logistics. A better idea about the demand will help the organization to balance its production so that there would be a minimum inventory. The demand forecasting also plays a major role in the inventory optimization which in turn ensures that there would be no excessive inventory in the system. The demand forecast works with the other factors like network structure, costs, and service level to maintain a policy optimization for the organization (Danziger, 2019).