Rolling forecast as an alternative tool for short term production planning: A case study of bicycle manufacturer
Open Access
- 1 January 2024
- conference paper
- Published by AIP Publishing in AIP Conference Proceedings
- Vol. 2951 (1)
Abstract
The accuracy of production planning is crucial that must be achieved by manufacturing companies. Production planning is sensitive to sales patterns and the availability of raw materials. Production planning must be in line with raw material planning. To ensure that the raw materials are available, production planning has to be deed in advance. In the waiting period for these raw materials, sales patterns may change so that the forecast and actual value deviations differ significantly. A dynamic mechanism of calculating the value of safety stock is carried out and carrying out the correction function of forecasting value by rolling forecast for overcoming it. Rolling forecasts allow forecasts of updated forecasting due to changes in sales patterns detected from actual sales value renewal. Using a rolling forecast as an alternative tool in forecast correction can reduce excess inventory by up to fifty-seven percent.Keywords
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