The fundamental on demand forecasting in inventory management

Several past studies or some inventory management text book have shown that the accuracy of the demand forecast significantly affects safety stock and inventory levels, inventory holding costs, and customer service levels. Currently, the Closed-circuit Television (CCTV) distributor Company is facing the problem meeting the required inventory level for some of the product and the problem might be due to inaccurate demand forecast. T he objectives of this paper are to implement and compare the performance of individual forecasting techniques and combination forecasting technique in demand forecast for inventory management. The study will be conduct using case study method. The demand data for one of the series product will be collect. Data analysis will be held using three individual forecasting method and two combination forecasting method.