Collaborative model based on ARIMA forecasting for reducing inventory costs at footwear SMEs

Abstract

This study addresses inadequate inventory management issues arising from poor demand management and insufficient inventory movement record communication. Focusing on a footwear retailer, this study determined that the main problem identified is rooted in an improper management of finished products caused by excessive production establishing optimum production quotas coupled with an inadequate optimization of the space used for inventory management. Within this context, the project proposes using the collaborative planning, forecasting, and replenishment (CPFR) methodology supported by ARIMA forecasting, a strategy that centers on maintaining adequate logistics development controls.