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Reducing Safety Stocks By Improving Forecast Accuracy - Forecasting Article
The article entitled: "Reducing Safety Stocks By Improving Forecast Accuracy" is in the Forecasting Articles section of Operations Management Papers area...
ARTICLE DESCRIPTION: A great deal is written about forecasting methods, but very little about how to deal with forecast error in the practical sense of how much safety stock is needed to allow for forecast error when placing manufacturing or purchase orders.
MORE INFO: Reducing Safety Stocks By Improving Forecast Accuracy A great deal is written about forecasting methods, but very little about how to deal with forecast error in the practical sense of how much safety stock is needed to allow for forecast error when placing manufacturing or purchase orders. This article describes a process that may help readers to make a start on reducing errors by recognising that they are inevitable, but can be managed by comparing alternative approaches, then selecting one that appears likely to give an acceptable error level. There are several reasons why forecasts are used to plan inventory levels. They include
PUBLISHER: Institute of Operations Management
Page number: 10 Word count: 1800
Vol 27 - No 08 - October 2001
The article can be downloaded in full from the publisher's site i.e. the Institute of Operations Management.
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