Demand Forecasting: A Case Study

Demand Forecasting
Forecasting is the action of predicting the quantity of a product or service that consumers will purchase or take service. There are different forecasting methods that can support in expecting the quantity of an item a consumer will purchase or take service. Choosing what forecasting method to use from a Company’s historical sales data can be quite challenging. The authors examined have done an excellent job assigning their material and how each variable can affect different circumstances due to demand inconsistency. The critical material used was the forecasting techniques along with the economic order quantity methods. The methods used ensured that appropriate steps were taken to fully understand the concept in order to build an inventory control model for Ayder Referral Hospital. For additional information on the effect of aggregating demand periods on inventory forecasting, please see (Varghese et al., 2011). However, forecasting the accurate demand for drug and medical supplies is difficult (Noorfa et al., 2009). One of the problems regarding this situation is the lack of precise data for medical supplies consumption (Ilma et al., 2013). Quantitative Forecasting Methods
A major factor influencing the selection of forecasting method is

For this reason, weighted moving averages place more weight on the most recent observations. While the moving average formula implies an equal weight being placed on each value that is being averaged, the weighted moving average permits an unequal weighting on prior time periods. The simple moving average uses equal weights for each observation, but a weighted moving average uses different weights for each observation. The only restriction on the weights is that their sum equals one. An advantage of the weighted moving average is that the weights placed on past demands can be