Demand Forecasting, Economic Order Quantity and Inventory Costs Calculation of a Company Producing Solar Panels

Abstract

Forecasting accuracy drives the performance of inventory management. This study involves forecasting the sales of PV modules of a solar panel manufacturing company by demand forecasting methods including regression and exponential smoothing models. Demand forecasted is used to control inventory, minimize cost of ordering and holding inventory. The model should propose a viable economic order quantity which reduces the total cost of the plan.