Demand forecasting for parts used in modular products: A case study

This paper describes various approaches to forecasting the demand for sub-assemblies used in a range of modular products in a particular assemble-to-order setting. The modularity principle and some of the problems it creates by enlarging the product range are discussed. A synthetic sequential bill-of-materials is presented which encompasses the examined product range accommodating the technological restrictions on the combinations of sub-assemblies as well. Finally, a heuristic is introduced which scales down intelligently the set of end products monitored for forecasting purposes.