38 Int. J. Applied Management Science, Vol. 7, No. 1, 2015
Copyright © 2015 Inderscience Enterprises Ltd.
Production planning forecasting method selection in
a supply chain: a case study
Fikri Dweiri, Sharfuddin Ahmed Khan and
Vipul Jain*
Industrial Engineering and Engineering Management Department,
College of Engineering,
University of Sharjah,
P.O. Box 27272, Sharjah, UAE
Fax: +971-65053963
Email: fdweiri@sharjah.ac.ae
Email: skhan@sharjah.ac.ae
Email: vjain@sharjah.ac.ae
*Corresponding author
Abstract: In modern supply chain, forecasting is critical for managers to
ensure the availability of the proper amount of inventory to satisfy customers
with minimum deviation. Without appropriate forecasting, it is very difficult to
plan effectively and efficiently. After scanning the literature, it is to be noted
that there is no recommendation of a specific method that is best for
forecasting. This is also due to the availability of many alternative forecasting
methods and criteria of preferences. Therefore, this paper proposes a ranking of
forecasting methods for production planning in a supply chain. The proposed
model is based on the analytical hierarchy process (AHP) since it has been
proven useful in multi-criteria decision-making in many industrial and real life
applications. It considers seven popular methods (decomposition, winter
exponential, double exponential, single exponential, trend analysis, five months
moving average and 12 months moving average) and three preference criteria
(MAD, MSD and MAPE). The model is tested using a real case study. The
sensitivity of the ranking was also tested and the ranges of criteria preferences
are determined for robustness.
Keywords: forecasting methods; production planning; supply chain
management; analytical hierarchy process; AHP; sensitivity analysis.
Reference to this paper should be made as follows: Dweiri, F., Khan, S.A.
and Jain, V. (2015) ‘Production planning forecasting method selection in a
supply chain: a case study’, Int. J. Applied Management Science, Vol. 7, No. 1,
pp.38–58.
Biographical notes: Fikri Dweiri is Associate Professor and Vice Dean of
College of Engineering at the University of Sharjah, UAE since 2013. He holds
a PhD in Industrial Engineering from the University of Texas at Arlington.
He served as the Dean of the School Technological Sciences at the
German-Jordanian University and the Founding Chairman of the Industrial
Engineering Department at Jordan University of Science and Technology. His
research interest includes quality management, supply chain management,
organisation performance excellence, multi-criteria decision making and fuzzy
logic.