Factors to consider when Forecasting Demand. The case of MediaMarkt Iberia.

Analisi dei processi aziendali. This thesis has been motivated by the author’s lack of information when having to implement a new demand planning system at a multinational company and having to parameterize all factors affecting demand forecasts. When assigned this task, different factors were identified by the author before the parameterization. However, some of the factors were not identified until the system was already implemented and some parameters had not been considered. Thus, the author wondered if a list of factors to consider when planning demand forecasts was available or had been studied by other researchers. Due to the lack of information in this area, the author decided to conduct a study on this topic. Motivated by the points mentioned above, the purpose of this research is to analyze and identify all the factors involved in demand planning and forecasting operations as well as analyzing from start to finish the implementation of a new automatic replenishment system at a multinational company. This research is based in both, a literature research and an empirical business case. The author aims to extract the existing factors affecting demand forecast that are mentioned in literature, as well as, listing and analyzing the factors specifically considered by MediaMarkt Iberia during its parameterization and transition to a new automatic replenishment system. The overall objective of this research is twofold, on one hand, the objective is that of analyzing the parametrization process at MediaMarkt Iberia, identify its disadvantages, determine a new way of implementing the process and analyze the results and benefits of this new methodology. On the other hand, the objective is that of creating a unified and unique list of all factors that have to be considered when generating forecasts and planning demand and inventory strategies.