Influence of Demand Forecasting in reducing the percentage of Safety Inventory of a Company’s Supply Chain to generate higher efficiency

Abstract

In this research, we discuss the definition of Demand Forecasting and Safety Inventory and synthesize both to get the impact of their relation for having a higher efficiency. We look at the overlap between demand forecasting and safety inventory and the interdependence of the two. We also discuss the historical development of this topics. We look at the various forecasting methods and provides the best one. We then understand the impact of safety inventory and how it influences the overall in fluency of a company. We take a brief journey through various forecasting thoughts and their influence on our understanding of management. Lastly, we use the knowledge generated from the study for giving the company an optimized inventory management solution, which will eventually contribute in generating higher efficiency and effectiveness as well.