An analysis of the forecasting function in large-scale inventory systems

This paper examines the forecasting function supporting large-scale inventory systems in leading firms. Little research has been conducted on managing the forecasting function when hundreds and, in some cases, tens of thousands of items are managed. Case studies are used to explore how companies noted for having state-of-the-art inventory systems have designed their supporting forecasting function. Inventory characteristics influencing the design of the forecasting function and general forecasting guidelines are provided.