Enhancing Inventory Level Through Effective Forecasting: The Case of Ethiopian Agricultural Business Corporation (EABC)

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Date

2019-06

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Publisher

Addis Ababa University

Abstract

Evaluating the effect of demand forecasting on inventory managment and identifying the co-factor variables that alter the inventory may influence the overall supply chain performance. The purpose of this research is to find the main factors and viable solution that affect the effectiveness of demand forecasting in inventory of Ethiopian agricultural business corporation. This study was performed in collaboration with the Ethiopian agricultural business corporation, which provided its sales and inventory data from 20112019. Data collected by interview, questioners & documents survey. Also, analyzed with SPSS and MSExcel software. According to the finding of the study it is verified that 90.2% of effectiveness of the forecast is depends on proper mathematical forecasting model, competency of inventory staff, consideration of competitor level, economic viewpoint, the price, type and level of technology of items and the accuracy of inventory recording and the other 9.8% explained by other variables outside this research framework. Other public enterprise can use the findings presented here in to drive their inventory and facility planning decisions and support investments in warehouse and supply chain integration.

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Keywords

Forecasting, Effectiveness, Inventory management

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