Demand forecasting in SME’s inventory management

The company of Small and Mediums Enterprises (SMEs) are among industries that need forecasting the most. The need to forecast in the management and operations is increasing in order to achieve its objectives. SMEs currently facing the problem of meeting the required inventory level for some of th...

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Bibliographic Details
Main Authors: Ramlan, Rohaizan, Atan, Siti Anisah, Rakiman, Umol Syamsyul
Format: Conference or Workshop Item
Subjects:
Online Access:http://eprints.uthm.edu.my/3396/
http://eprints.uthm.edu.my/3396/1/ENT075.pdf
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Summary:The company of Small and Mediums Enterprises (SMEs) are among industries that need forecasting the most. The need to forecast in the management and operations is increasing in order to achieve its objectives. SMEs currently facing the problem of meeting the required inventory level for some of the product and the problem might be due to inaccurate demand forecasting. The objectives of this paper are to identify the data pattern and to choose the suitable methods from the identified pattern. Comparison among methods was conducted to determine the best method for the company in order to prepare them for future inventory. This study was conducted using the case study method. The data of demand for one of the product series for nine consecutive years were collected and forecasted for the purpose of this study. From the result, three methods were selected based on pattern data. The finding revealed that, Time-Series Decomposition is the best method when comparison forecast accuracy is made.