Electrical Cable Demand Prediction Using ARIMA

Abstract

In era of industry 4.0, manufacturing industry has become in highly competitive environment. This drives all businesses to adapt themselves. One of them is electrical cable manufacturing whose customer demand is uncertain. To deal with it, higher inventory is carried which returns higher cost of inventory carrying. Therefore, this paper aims to predict time-series electrical cable demand using autoregressive integrated moving average (ARIMA). Its accuracy is measured using mean absolute percentage error (MAPE) at less than 20 percent. As the result, inventory carrying cost is reduced which enable lower cost of logistics.