Inventory management is a key challenge for any company that manages a stock of products or raw materials. Inventory is essential to meet customer demand and maintain operational efficiency, but it can also be expensive. Excess stock can lead to unnecessary working capital expenses and the risk of not selling products, while shortages can negatively impact customer satisfaction […]
In previous posts I introduced very simple (and naive) forecasting methods, namely CAGR-based forecasting and simple moving average forecasting. I implemented such forecasting methods in R and demonstrated basic use cases. In this post I want to introduce another simple forecasting method: Random walk forecasting. I will implement an example using Python. Random walk forecasting […]
In a previous post I explained CAGR-based forecasting. CAGR-based forecasting is a very simple forecasting method which is often applied in industry, e.g. for forecasting sales and production output. Simple forecasting models have benefits. They are easy to understand and easy to implement. In addition, they contain few parameters and are thus very precise in their […]