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1、Chapter1DemandForecastingforInventoryControl1.1Introduction1.1.1DemandForecastingManagementiscontinuallyfacedwithafast-pacedflowofbusinessplanninganddecision-makingsituations.Aforecastofsometypeisusedasabasistomeetmanyoftheseneeds,whereby,themorereliablethefor
2、ecasts,thebettertheoutcomefortheplanninganddecisions.Forecastinghasplaguedmanagementforcenturies,butnow,withtheadvancementincomputers,forecastingmethodsthatpreviouslywereimpossibletoexplorearecurrentlyachievable.Asoundforecastingsystemisanecessityintheexpandin
3、gsupplychangeman-agementworld,allowingfirmstocopewiththeever-changingshiftsindemandsfortheirproductsandresources.Thecommongoalistohavetheleastamountofinventorytosatisfythecustomers’demandsforitsproducts,andatthesametimeminimizethecostofbuyingandholdingtheinven
4、tory.Acompanywithanoversup-plyininventoryincursunduecostscausedbyexcessstorage,stockdeteriorationandobsolescenceoftheitems.Withanundersupply,expediting,badwillandlostsalesresults.Reliableforecastsareessentialforacompanytosurviveandgrow.Inmanufacturing,manageme
5、ntmustforecastthefuturedemandsforitsprod-uctstoprovideforthematerials,labor,andcapacitytofulfilltheseneeds.Theseresourcesareplannedandscheduledwellbeforethedemandsfortheproductsareplacedonthefirm.Ininventoryholdinglocations,(distributioncenters,stores,dealers)
6、,forecastsareessentialtotheinventorycontrolsystem.Locationsholdthousandsofitemsinstockandmustanticipateinadvancethedemandsthatwilloccuragainsteachoftheseitems.Thisisneededtohavetheproperinventoryavailabletofillthecustom-ers’demandsastheycomein.Indistributionce
7、nters,thelead-timeistypicallytwoormoremonthsandinstoresanddealersitistwoormoredays.Managementmustplaninadvanceforhowmuchinventorytohaveavailable.Witheachiteminthein-ventory,forecastsareneededforthemonthsovertheplanninghorizon.Theforecast©SpringerInternationalP
8、ublishingSwitzerland20151N.T.Thomopoulos,DemandForecastingforInventoryControl,DOI10.1007/978-3-319-11976-2_121DemandForecastingforInventoryControlisthecatalystthatdetermineswhentob
