A Study of Demand Forecasting in the Defense Logistics Agency
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
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This report presents the findings of the study of demand forecasting conducted by the Operations Research and Economic Analysis Office at DLA. The study compared a number of different forecasting methods to determine if improvements over the current DLA forecasting method could be obtained. The methods were compared using both forecast error and impacts on the inventory system variables as criteria for judging improvement. The results of the study showed that the preferred method produced a 3.9 decrease in the average forecast error over the current system. Positive impacts on safety level dollars and other inventory variables would also be realized if, as the study recommends, this alternative technique is implemented. The report also offers several other recommendations for improving demand forecasting in DLA.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies