Demand Forecasting of an Industrial Item: A Methodology Study
Zubova, Nadezhda (2019)
Zubova, Nadezhda
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019121727131
https://urn.fi/URN:NBN:fi:amk-2019121727131
Tiivistelmä
The demand forecasting process plays an essential role in any business organization. It leads to smaller inventory costs, better planning of resources and, in general, minimized costs and maximized customer service level. However, surveys among companies show that a very small percentage of them can actually implement the forecasting process successfully. There are several reasons behind this, such as lack of knowledge and tools, skepticism about the quality of the process and other reasons.
The objective of the study was to provide information about the importance of demand forecasting for companies. Moreover, factors, such as demand forecasting errors and those related to achieving a good quality implementation of demand forecasting were studied. Finally, the aim was to create a demand forecasting model for a case company and choose the most suitable method for the process.
During the research process, the author utilized the mixed research approach that included components of quantitative and qualitative research methods. The theoretical part of the study was based on a literature review, which helped to answer some of the re-search questions. Based on the collected information, the author was able to conduct a case study as well as test and analyze four different methods of demand forecasting.
The results of the case study helped to choose the most suitable model for the case company. Although the proposed model was not originally tested and analyzed, it was possible to make such conclusion based on the results related to the four chosen models for the case study. However, the case study results cannot be generalized because they were highly customized for and adjusted to a specific company and its SKU situation in a certain environment. In addition, proposals for further research and recommendations for the company were given.
The objective of the study was to provide information about the importance of demand forecasting for companies. Moreover, factors, such as demand forecasting errors and those related to achieving a good quality implementation of demand forecasting were studied. Finally, the aim was to create a demand forecasting model for a case company and choose the most suitable method for the process.
During the research process, the author utilized the mixed research approach that included components of quantitative and qualitative research methods. The theoretical part of the study was based on a literature review, which helped to answer some of the re-search questions. Based on the collected information, the author was able to conduct a case study as well as test and analyze four different methods of demand forecasting.
The results of the case study helped to choose the most suitable model for the case company. Although the proposed model was not originally tested and analyzed, it was possible to make such conclusion based on the results related to the four chosen models for the case study. However, the case study results cannot be generalized because they were highly customized for and adjusted to a specific company and its SKU situation in a certain environment. In addition, proposals for further research and recommendations for the company were given.