UNDERSTANDING PRODUCTION MANAGEMENT THEORY REGARDING DEMAND FORECASTING AND VARIATION: A LITERATURE REVIEW

Abstract

dedicated attention to demand planning. In the various operations of companies, the lack of predictability can lead to disruptions, excesses, or obsolescence of inventory, resulting in financial losses. Materials management contributes to competitive advantages, cost reductions, and investments in inventory. The lack of demand predictability represents a significant challenge. This article discusses how production management theory identifies demand forecasting and variability in the context of materials management in Brazilian cases, through a survey of practices and methods adopted by various studies. The study mapped out how production management theory understands demand forecasting and variability, examined studies on these topics, and analyzed how forecasting techniques impact inventory management, identifying recurring practices for collaboration between demand and materials planning. The research results reveal a diversity of perspectives when analyzing demand forecasting, showing that various factors influence demand and variations, but all agree that accurately predicting demand is crucial for managing inventory efficiently and satisfying customers. The importance of an efficient alignment between supply, planning, and commercial areas is highlighted, impacting positively on service levels. Therefore, these cases emphasize an integrated approach to supply chain management, aiming at risk reduction and resource optimization.