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Demand sensing is a short term forecasting using machine learning models with a range of real time data as inputs to understand demand trends and forecast future demand patterns for products or services. It is used to improve supply chain planning by providing accurate and timely information to manufacturers, suppliers, and retailers, allowing them to better match inventory levels with customer demand. Demand sensing uses advanced analytics, machine learning algorithms, and statistical modelling to generate forecasts that are continuously updated based on new data.

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