Research on Optimization of Inventory Management Based on Demand Forecasting…

Research on Optimization of Inventory Management Based on Demand Forecasting Xi Jia, Sha Pingba Chongqing Business Vocational College, Chongqing, China xiajia@163.com Keywords: Inventory Management, Demand Forecasting, Quadratic Exponential Smoothing, ABC classification. Abstract: Demand forecasting is the basis of the inventory management. Aiming at the problem of subjective forecasting method, we use quadratic exponential smoothing method to establish the mathematical model, to forecast sales volume of product A in every month in 2013. And based on demand forecasting, we put forward ABC classification management method to solve the inventory management issues. The research result of this paper has important implications in improving the inventory management level for many enterprises. Demand Forecasting and Inventory Management Inventory management is an important part of enterprise management, and it directly affects the business situation of enterprises. A reasonable inventory can significantly enhance the comprehensive competitiveness of enterprises; too much or too little inventory settings would have a bad impact on the business, and some company even bog down because of inventory problems companies bogged down because of inventory problems [1-2]. To do inventory management, what should we do in the first step. The answer is demand forecast. When busi