Abstract
The organizations maintain excessive inventories as a way to anticipate the customer's need, taking, this way, competitive advantage. On the other hand, the lack of stocks can stop assembly lines; change the production schedule; increase costs and harm the marketing planning. However, there are costs in relation to these inventories;therefore, set an appropriate policy stock management is a critical factor for the success of a company, in addition to obtaining sustainable competitive advantage in the long term. Considered by many as the basis for managing the supply chain, inventory management depends on clear definitions for the following questions: how much to ask, when to ask, how much to keep in stock and where to find the stock. Therefore, there must be a balance in relation to demand and stock supply. Increased market competitiveness forces companies to lower their stock costs and may result in loss of orders due to lack of product. This paper describes the process of forecasting demand, and the methods of analysis forecasting as a tool to reduce costs by simulating the methods of demand forecasting in order to improve the level of stock. Thus, a case study was elaborated in the ABC Company, which acts in the imported PPE business for analyzing the process and simulating the techniques of demand forecasting. The results presented in the case study were satisfactory actually observed divergence between the process applied before the company and applied studies directly on demand obtained with this assertiveness in the forecast..
Highlights
The reduction of inflation in Brazil finalized a phase of revenue for the organizations that was often the valuation of stocks (KRIEGER, 2002)
Realizing this view, the decision was made to analyze the demand forecasting process in the ABC Company and to apply different forecasting methods extracted from various sources, in order to identify which methods present the best prediction indexes in relation to the results obtained today by the process adopted by the company
A decisive factor for the accomplishment of the case study was the possibility of measuring and comparing the possible gains that would be achieved if the ABC Company adapts its processes to a new model of demand forecasting
Summary
The reduction of inflation in Brazil finalized a phase of revenue for the organizations that was often the valuation of stocks (KRIEGER, 2002). According to Slack et al (2007), the stock exists to compensate for the differences in the rhythm between supply and demand of material resources, that is, if the supply of any item occurred when demanded, the item would never need to be stocked Based on this concept, a case study was carried out, with the purpose to apply other methods of forecasting demand. According to Ballou (2006), demand forecasting is imperative for the company in all departments, as it provides parameters for supply and control Realizing this view, the decision was made to analyze the demand forecasting process in the ABC Company and to apply different forecasting methods extracted from various sources, in order to identify which methods present the best prediction indexes in relation to the results obtained today by the process adopted by the company. A decisive factor for the accomplishment of the case study was the possibility of measuring and comparing the possible gains that would be achieved if the ABC Company adapts its processes to a new model of demand forecasting minimizing the lack of products and allowing the minimum possible leftovers, resulting in cost reduction
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
