The Forecasting and Economic Odering Quantity for Package Demand: A case study of Agricultural Products Processing Company in Phatthalung Province

Abstract

The research aims to study about the concept of demand forecasting in coffee packages, which are 3in1 package (Green) and 4in1 package (Red), and to calculate the volume of economic order quantity (EOQ) and the reorder point (ROP) of coffee packages in a company case study. The result would be a prediction model for a company case study to order the appropriate number of coffee packages in the future. Moreover, there are composed of three forecasting models that reveal in this research: weight moving average (WMA), double moving average (DMA), and double exponential smoothing (DES). Due to the number of forecasting models and customer demand, accuracy measurements by using mean square error. The result reveals that the most appropriate forecasting model of this research is weight moving average (WMA) with the variable coefficient lower than 0.25, which means this model could be applied to calculate the value of economic order quantity (EOQ) and the reorder point (ROP). In addition, the final result demonstrates that the most appropriate value of economic order quantity (EOQ) for 3in1 package (Green) is 53.47 packages and the values of reorder point (ROP) is 24.33 packages per one order. Furthermore, the most appropriate value of economic order quantity (EOQ) for 3in1 package (Red) is 228.11 packages and the values of reorder point (ROP) is 174 packages per one order.