Validation of an expert system for inventory replenishment using case studies

Abstract

Demand forecasting becomes critical for make to stock production systems companies in order to manage more accurately the finished goods inventories. In this paper an inventory replenishment expert system with the objectives of improving quality service and reducing holding costs is tested. The inventory replenishment expert system, based on an ABCXYZ analysis and time series forecasting techniques, proposes the most effective replenishment strategy for each product category. Two case studies were developed in order to test and improve the system; the first one at a beverages’ distribution centre and the second one at a manufacturer of home appliances.