APPLICATION OF FORECAST TECHNIQUES AT SATLUB - JEDDAH, SAUDI ARABIA

Abstract

This paper tackles a problem that many companies usually face while trying to anticipate future demand on certain products in order to avoid potential opportunity cost or to eliminate unnecessary inventory costs. Those companies frequently while they try to forecast future demand on their key products, they do not know what forecasting techniques or methods that are most suitable to their products. Consequently, they generate forecast that deviate heavily from the actual demand that their clients desire. SATLUB, a company that produces automobile lubricants is one of those companies that do not have a robust demand planning process. In this paper, data of three flagship products produced by SATLUB will be used to determine the best suitable forecasting technique to be used for the products. The forecasting technique which is Decomposition Classical Method will be used to plot and examine that data and patterns of the data will be studied. The results reveal the Decomposition Classical Method is a potential forecasting technique that SATLUB can use to forecast the future demand.