Development of Forecasting Model with Simple Smoothing and Inventory Model with DDMRP in Veterinary Medicine Industry

It is hard to determine the trend and the season for Veterinary Medicine, so the usual type of Forecasting Method that the industry used still has low accuracy. Because of the low forecasting accuracy, the inventory number will be high, and then there is a high chance of a longer lead time. To improve forecasting accuracy, the author aimed to find the suitable model for increasing the forecasting accuracy used in Veterinary Industry and the suitable inventory model to decrease the inventory number. The study uses Simple Exponential Smoothing as a forecasting model and DDMRP (Demand Driven Material Requirement Planning) as the Inventory model. The author uses Simple Exponential Smoothing because the trend and seasons in Veterinary Medicine are still unknown. The author uses DDMRP as the Inventory Model because the safety stock can be adjusted according to the market's medicine demand.