Demand Forecasting: Your Best Bet for Business Growth

Abstract

Demand forecasting is undeniably the most important component of any supply chain. It establishes the level of readiness needed on the supply side to meet the demand and estimates the demand for the anticipated future requirement. If an organization does not predict demand with certain accuracy, the supply chain takes a huge hit. Seeing the importance of demand forecasting, let us discuss about the forecasting techniques which are used to predict the future demand. In order to produce accurate forecasts and assess forecast accuracy, both the input and the modelling engine are crucial. The purpose of the project is to identify an efficient solution to forecast of demand so that it improves cost management and retail management for the case of the furniture industry. Company uses forecasting method based on the moving average, on a monthly scale, to estimate the following period. Project goal is to make a model to forecast demand using Time series forecasting and SARIMA model