Multi-criteria approach to adjust demand forecast for products: application of analytic hierarchy process

Abstract

Demand forecasting is related to anticipating future levels of demand for a company's products and/or services. According to Werner & Ribeiro (2006), forecasting is fundamental for structuring the company to determine the quantity of goods or services it will produce so that it can predict and meet the consumer market's demand. With that in mind, Pellegrini & Fogliatto (2001) consider that demand forecasting plays an important role in the strategic planning of production, sales, and finances of organizations in general. For Werner & Ribeiro ( 2006), reliable forecasts require the use of various methods and the largest amount of available information. Based on these definitions, one infers the importance and extent to which demand forecasting is a determining factor for the company's performance in the market as a whole.The company analyzed is a textile industry with an average portfolio of 812 models per collection, supplying products to more than 30 thousand stores in Brazil, besides exporting to such countries as Saudi Arabia,