SMOOTHING AND ADJUSTMENTS OF DEMAND FORECASTS FOR INVENTORY CONTROL

摘要

Demand forecasting and stock control are traditionally examined as independent of each other. Even though this research-related weakness has been highlighted in the academic literature, little empirical work has been conducted on necessary adjustments that address the issue of interaction between forecasting and stock control. In this paper, the empirical performance of some relevant modifications is examined in detail. The demand data set consists of the individual demand histories of 786 SKUs coming from the Royal Air Force (RAF, UK). The simulation results indicate that there is scope for improving the performance of parametric stock control systems.