Demand Forecasting for Lean Supply Chain
Correct estimation of future sales is an important challenge for a company. Better forecasting not only reduces the inventory and holding cost of the firm but also helps in maintaining a lean and efficient supply chain. Employing Grid Search technique to calculate the smoothing parameters in the forecast model used by a leading Paints company in India shows an improvement in the seasonal sales forecast by 18%. Companies can further modify this model and use it in a variety of demand forecasting situations.