How is inventory forecasting important in a manufacturing plant ? How to determine proper technique for forecasting for sourcing of spare parts ?

Forecasting Inventory basically a skill to avoid loses due to any kind of RM.The more the Inventory the more risk involved.Chances of ECN changes and market situation vary based on the consumers.

If the procurement of spares is based on domestic then order to product rule can be applied by implementing a separate After sales division with minimum inventory.If the spares are Imported +-% of the future forecast can be made available for safety situations.

Forecasting inventory in the factory are very important raw material for the production of all production processes in the plant , as well as to the function of financing .

Forecasting the right to supply spare parts , is to look in the manufacture and use of certain tiapperiode each and there should be service and replacement parts , as well as sufficient financial preparing .

Inventory forecasting is an imperfect science, but it is also a necessity for most businesses. That's particularly true when it comes to supply chain management. Proper forecasting helps to ensure you have enough supply on hand to satisfy customer demand. Business analysts use supply chain management systems and other tools to forecast demand weeks and months.

Forecasting demand, and coordinating activities to meet demand, are full-time jobs. Companies with global operations use sophisticated software and systems to forecast demand, but small businesses can forecast supply chain needs using simple techniques.

Best forecasting technique for spare parts -  Croston's method is one of the best forecasting tool available in current market.

Croston’s method uses the intermittent nature of the demand by separately updating the demand size and the demand interval, this will in many cases be more accurate for spare parts. - See more at: http://implementconsultinggroup.com/inspiration/articles/managing-the-demand-for-spare-parts/#sthash.OXUdqxbJ.dpuf Croston’s method uses the intermittent nature of the demand by separately updating the demand size and the demand interval, this will in many cases be more accurate for spare parts. - See more at: http://implementconsultinggroup.com/inspiration/articles/managing-the-demand-for-spare-parts/#sthash.OXUdqxbJ.dpuf Croston’s method uses the intermittent nature of the demand by separately updating the demand size and the demand interval, - See more at: http://implementconsultinggroup.com/inspiration/articles/managing-the-demand-for-spare-parts/#sthash.OXUdqxbJ.dpuf

Forecasting is playing a major role in the manufacturing companies today.

The proper technique of forecasting can be smoothing technique of the demand for past data