Using productivity concept to predict material demand
Background: The issue of material demands prediction has been researched in industrial study and materials/ manufacturing technology many years ago. The previous researches based on stochastic model to discuss the quantities prediction of material demand. Some of them focus on multi-suppliers with characteristic function. Some use the information of past ordering quantities and ordering recency time. In these previous models, there is less study to discuss the impact of cost on material demand forecasting. Thus, this paper considers the productivities concept to make cost balance when forecasting material demand. The different probability distributions are demonstrated to portray the input (material demand) and output(cost). Methods: A case study with its empirical data is released to derive the probability function of cost and estimate the parameters of the proposed model. Results: The proposed model can extend to different distributions depending on different kind of cost or different type of industries and is more widely application. Conclusion: To consider manufacture's productivity, this model can help manager to control their cost and make a balance when ordering their materials. The model development of cost release a general function which makes it possible to extend different distributions depending on different kind of cost or different type of industries.