Forecasting Techniques In Aviation Industry Essay

Forecasting Techniques In Aviation Industry - Essay Example The company developed and implemented a global supply chain solution. This enabled the company to deliver on board customer services as one of the largest airline firms of the world. The company is first to personalize the service for the valued customers. The technology partners of the company are industry matematik International (IMI), Manugistics. One of the most valued strength of the company is committed and professional people in the staff. The majority of the staff in BA is willing to own a problem and is capable of chasing it exemplary. 1 The British Airways demonstrated the compatibility of pleasure and profits. The organization in the company presented its culture as the explanation for the transformation. The organizational environment at the time of transformation resulted in structural changes observing the impact of them in the long term. The organizational structure of the firm exhibited no corporate friction. In general the corporate friction targets to promote positive attitudes by increasing employee's area of responsibility. This system will align financial interests. BA's organizational structure targeted employee attitudes and aimed at secure commitment. The structure did not resign behavioral compliance as staff has common vision in working together. 2 1.2 Problem definition and analysis: The problem conside... When the items are slow moving, generally they are not available readily and the maintenance of those parts by the company can be a burden of inventory. As airlines are a service industry, the maintenance of an inventory to avoid shortage of spare parts is not cost effective practice. One of the possible solutions is the forecasting techniques for the shortage of spares. The forecasting of the problem helps in acquiring the required parts in a particular period of time for the aircrafts of the firm. The all zero, several levels of demand lumpiness, demand variation and ordering, holding and shortage cost are the few models that can be useful in fore casting the shortage of spares in the airlines firm. The evaluation of the forecasting methods by three measures of forecast error and other measures by inventory cost is recommended. All zero forecasts yield the lowest cost when the lumpiness is high. The bid lumpiness also requires the zero forecasts when the shortage cost is more than the holding cost. The maintenance of the spares in the form of inventory should be termed as cost effective when the cost incurred on the company due to shortage is more than the holding cost of the spares in the form of inventory.3 2. Literature Review 2.1 Forecasting demands and Challenges: A.A. Ghobbar in 1994 stated that the most accurate forecasting method on the basis of demand pattern fluctuation in the industry. The average mean absolute percentage error can help in selecting the forecasting methods. The average inner demand interval categorisation can establishes the validity of the factor ranges as a crucial finding. This will simplify and segment the results obtained by evaluating the forecasting methods and