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https://www.um.edu.mt/library/oar/handle/123456789/122747| Title: | Monte Carlo simulation as a demand forecasting tool |
| Authors: | Przysucha, Bartosz Bednarczuk, Piotr Martyniuk, Włodzimierz Golec, Ewa Jasieński, Michał Pliszczuk, Damian |
| Keywords: | Monte Carlo method Supply and demand -- Forecasting Business forecasting Organizational effectiveness |
| Issue Date: | 2024 |
| Publisher: | University of Piraeus. International Strategic Management Association |
| Citation: | Przysucha, B., Bednarczuk, P., Martyniuk, W., Golec, E., Jasieński, M., & Pliszczuk, D. (2024). Monte Carlo simulation as a demand forecasting tool. European Research Studies Journal, 27(s2), 103-113. |
| Abstract: | PURPOSE: This article aims to evaluate the effectiveness of Monte Carlo simulation as a tool
for demand forecasting. DESIGN/METHODOLOGY/APPROACH: The study analyzes historical data on product sales, fits a theoretical distribution, and then applies Monte Carlo simulation to forecast demand for the next 15 days. FINDINGS: The result of the research shows that Monte Carlo simulation can outperform more straightforward methods such as averaging, particularly in the presence of uncertainty or randomness. PRACTICAL IMPLICATIONS: The study demonstrates how Monte Carlo simulation can improve demand forecasting accuracy, which is crucial for optimizing various business operations. ORIGINALITY/VALUE: This study's novelty lies in demonstrating the practical application of Monte Carlo simulation for demand forecasting and comparing its performance against traditional methods. |
| URI: | https://www.um.edu.mt/library/oar/handle/123456789/122747 |
| Appears in Collections: | European Research Studies Journal, Volume 27, Special Issue 1 - Part 1 |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| ERSJ27(s2)A10.pdf | 533.32 kB | Adobe PDF | View/Open |
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