Demand forecasting approach inventory control for CIMS

This paper presents a technique to control the inventory level on the warehouse automation by using continuous reviewing and forecasting system. The product demand that stored in the warehouse depends on orders from customers. For each product, the demand follows a Poisson process and the delivery lead-time is known. The demand forecast can predict the trend of order and redefine the reorder point (RP) of inventory that linked to automatic warehouse control system. The automatic warehouse plays an important role in the computer integration manufacturing system (CIMS). The functions of CIMS include production planning, material requirement planning, work order generation, process control, quality control, shipping planning, warehouse and inventory management and material cost accounting (Y. Nagata et al., 1998). This paper focuses on implementing an automatic warehouse control and inventory management demand forecasting system.