Implementation of Fuzzy Linear Programming Approach for More Accurate Demand Forecasting in a Make-to-Stock Company

Authors : Çağatay Teke

Pages : 35-40

Doi:10.21541/apjess.1205309

View : 47 | Download : 26

Publication Date : 2023-01-30

Article Type : Research

Abstract :Demand forecasting is of crucial importance for make-to-stock companies because product demand is uncertain and it changes with time. Fuzzy linear programming (FLP) can be an optimum approach for such uncertain situations. In this study, the FLP model was used for more accurate demand forecasting in a make-to-stock company. Demand forecasting study was carried out according to the FLP method and linear programming (LP) method. Solutions of FLP and LP were compared in terms of imputed shortage cost, inventory carrying cost, and net profit. Results show that the applied FLP method is more advantageous than LP as it provides a 67% decrease in costs and a 15% increase in net profit.
Keywords : Demand Forecasting, Fuzzy Linear Programming, Make-to-Stock