Smoothing and adjustments of demand forecasts for inventory control

Syntetos, A; Boylan, JE

Abstract

Demand forecasting and stock control are traditionally examined as independent of each other. Even though this weakness has been highlighted in the academic literature, little empirical work has been conducted on forecasting adjustments addressing the interaction between forecasting and stock control. In this paper, the relevant literature is critically reviewed. Subsequently, the empirical performance of some modifications and adjustments, on slow-moving items, is examined in detail. The data set consists of the individual demand histories of 753 intermittent line items from the Royal Air Force (UK). Overall, the
results indicate that there is a scope for improving the performance of parametric stock control systems, and adjustments are indeed required in order to account for the interaction between forecasting and stock control.

Citation

Syntetos, A., & Boylan, J. (2008). Smoothing and adjustments of demand forecasts for inventory control. IMA Journal of Management Mathematics, 19(2), 175-192. https://doi.org/10.3182/20060517-3-FR-2903.00104

• Journal Article Type: Article
• Publication Date: Jan 1, 2008
• Deposit Date: Oct 13, 2011
• Journal: IMA Journal of Management Mathematics
• Print ISSN: 1471-678X
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• Volume: 19
• Issue: 2
• Pages: 175-192
• DOI: https://doi.org/10.3182/20060517-3-FR-2903.00104
• Publisher URL: http://dx.doi.org/10.3182/20060517-3-FR-2903.00104