Track: Systems Engineering

Abstract

The purpose of this study is to forecast product demands and develop appropriate and adequate procurement plans to meet customer needs and reduce costs. When the product exceeds customer demands that the company supports insufficient storage spaces. Moreover, some items are stored for a long period, causing the deterioration of dead stock. Which that uncertain customer demands, are considered. The actual purchasing orders of customers aren’t equal to the forecast provided by the customers. In some cases, customers have higher product demands, resulting in the product being insufficient to meet the customer's needs. However, some customers have lower demands for products than estimates, causing insufficient storage spaces and dead stock. This study aims to reduce the loss of sales opportunities and the number of remaining goods in the warehouse, citing 5 product samples of the company's most popular products. The data were collected during the duration of the study from January to December 2022. The methods used to forecast are simple moving averages, weighted moving averages, and exponential smoothing methods. The economic ordering quantity and reorder point are used to calculate to meet customer needs and track results. The research results are very beneficial to the company. The company can reduce the loss of sales opportunities by 10%, so that the company has enough products to meet customer needs, and can reduce unused products up to 10% dead stock. This enables the company to order products more accurately, increasing profits and storage space.