Case Study

Demand Forecasting and Safety Stock Optimization: The Effects of Enhanced Forecasting Engines on the Bottom Line

Demand Forecasting and Safety Stock Optimization: The Effects of Enhanced Forecasting Engines on the Bottom Line

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Case Study Client Key player in the aerospace and defense industry. Evalueserve was approached by a client in the aerospace and defense industry hoping to reduce the percentage error (PE) in demand forecasting, which was approximately 54%. The inconsistent nature of their current forecast was also resulting in under-utilized inventory space and the inability to consistently keep high-demand products readily available. Approach Demand Forecasting and Safety Stock Optimization: The Effects of Enhanced Forecasting Engines on the Bottom Line A robust demand forecast was developed for a six month period, which included recommendations for safety stock optimization. Using advanced analytics, we successfully reduced the total average PE to less than 16%, while simultaneously increasing

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