Demand Forecasting to Support Inventory Management

This research aims to develop an algorithm that estimates the future values of production demands. Demands are necessary to address the production process and resource inventory management. Difficulties in estimating demands stem from their stochastic nature. The lack of deterministic demand values can increase production costs depending on the lack or excess of inventory or lost profits due to lost production requests. An algorithm with a combination of demand forecasting and predictive model control approach is derived. The latter has been applied for consistent assessments of future needs and improvement of forecast parameters for animal feed consumption. An estimate of the accuracy and error between actual and predicted requirements is presented.