Demand Forecasting and Replenishment: OTE/OTEPlus
Demand Forecasting and Efficient Replenishment of high technology products
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.