What does "Usage-Based Forecasting" refer to?

Usage-Based Forecasting refers specifically to a method of predicting future supply needs by analyzing historical usage data and trends. This approach relies on the actual patterns observed in how medical materials and supplies have been utilized over time. By examining past consumption rates, organizations can make informed estimates about future requirements, adapting to changes in demand more effectively.

The rationale behind this method is that historical data provides relevant indicators of future behavioral patterns, allowing for more accurate and responsive inventory management. This is particularly critical in medical settings, where the availability of supplies can directly impact patient care.

In contrast to options that imply theoretical approaches or disregard historical data, Usage-Based Forecasting is rooted in empirical evidence and practical trends. Therefore, the focus on historical usage ensures that the forecasts are grounded in reality, thereby increasing the reliability of supply planning decisions.