Forecasting -- Demand forecasting and inventory control; Short-term forecasting for stationary demand situations; Short-term forecasting for growth and seasonality; Medium-term forecasting for growth and seasonality; The essential links between forecasting and inventory control; Inventory control: the re-order level inventory policy -- Establishing the value for the re-order level; Establishing the size of the replenishment order; Examining the relationship between the re-order level and the replenishment quantity; Inventory control: the re-order cycle inventory policy -- Establishing the review period and maximum stock level; Conclusion -- Selecting the most appropriate inventory control policy.
This practical book covers the forecasting- and inventory control methods used in commercial, retail and manufacturing companies. Colin Lewis explains the theory and practice of current demand forecasting methods, the links between forecasts produced as a result of analysing demand data and the various methods by which this information, together with cost information on stocked items, is used to establish the controlling parameters of the most commonly used inventory control systems. The demand forecasting section of the book concentrates on the family of short-term forecasting models based on the exponentially weighted average and its many variants and also a group of medium-term forecasting models based on a time series, curve fitting approach. The inventory control sections investigate the re-order level policy and re-order cycle policy and indicate how these two processes can be operated at minimum cost while offering a high level of customer service. Covers both the theory and practice of current demand forecasting methods Is published in association with The Institute of Operations Management.