Demand Forecasting and Replenishment: OTE/OTEPlus

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Demand Forecasting and Replenishment: OTE/OTEPlus

Demand Forecasting and Efficient Replenishment of high technology products

Funding Agency OTE, OTE plus
Project Type RTD
Starting Date 1 June 2004
Ending Date 31 May 2005
Scientific Coordinator Dr Katerina Pramatari
Project Manager Dr Katerina Pramatari
Contact Ms Cleopatra Bardaki
Group SCORE

 

Description

This research has studied OTE, the leading Greek Telecommunications Organization that operates a wide retail chain of shops selling high-tech telecommunication and mobile telephony products. The objective of the hi-tech chain is effective inventory management, in order to eliminate the product shortages with the minimum possible inventory holding cost. The study involved the following phases:
• Analysis of OTE shops supply and demand chain, in order to study the ordering process and explore the main problems.
• Selection and evaluation of a demand forecasting method, based on one year’s sales data from a representative sample of shops
• Integration of the demand forecasting model with the retail chain’s periodic replenishment policy
• Application of the demand forecasting and replenishment models in a sample of shops for a four-week pilot program and
• Analysis of the results about the accuracy of the forecasting model; and the ordering process, the shortages and the inventory levels during the pilot program.