Abstract:
This research aims to determine the appropriate forecasting technique for steel
pipe product of a sampled customer. The current forecasting method is that an
operator uses an experience for data analysis and compare with the previous orders
and trend of automobile industry. Then the customer demand is forecasted and
submitted to planning and production control section to be used in planning of raw
material needed. Utilizing the mentioned method, the value of MAD for the period
of January 2011 and December 2012 was 5447.9 pieces which was too large.
Therefore, the forecasting techniques e.g. (1) moving average, (2) weighted moving
average for n=3 and weighted of 3, 2 and 1, (3) single exponential smoothing and (4)
linear trend analysis were tested with the sampled customer purchasing order data
in the year of 2013. As a result, the appropriate forecasting technique for the steel
pipe product was weighted moving average with the value of MAD of 416.6 pieces.
With this set of ordering data, the old forecasting method gave the value of MAD of
627.7 pieces. The old forecasting method has a value of inventory accumulation of 8
297,810.6 and the selected method has the same value of ฿197,654.7. So, the
selected method has 8100,155.9 less inventory accumulation or 33.6 percent
reduction.