Production planning based on demand forecasting

In any manufacturing industry, one of the areas where business leadership can focus to achieve cost reduction is inventory management. Inventory ties up working capital which could be better employed elsewhere. The main problem in inventory management is to determine inventory levels and order raw materials and produce finished products accordingly. The goal of this paper is to present a simple framework developed to assist end-users in their decision making process for inventory control. The framework is based on time series oriented forecasting methods to select the reordering strategies for independent demand of a product for small manufacturing companies.