Forecasting is a science that relies greatly on data. It is the process of making predictions, which helps you make decisions, such as about what to produce and how much inventory to carry. Businesses use a variety of forecasting techniques, from exponential smoothing to judgmental forecasting, to develop meaningful future sales forecasts. Often, company management also makes use of financial planning and analysis software to forecast calculations based on various financial targets. Ultimately, the goal of developing accurate trending data, pursuant to historical performance and current market activity, which can be analyzed with statistical modeling.