Mathematical Modeling in Production Forecasting

Industrialization plays an important role in nation building. Forecasting presents an unresolved philosophical dilemma to achieve the actuals. Forecasting production demand is an essential and paramount requirement of any manufacturing unit. The use of mathematical modeling and statistical tools started way back in early nineties. In Indian context heavy industries, in both public and private sector, are already using these tools in their respective fields to minimize the total cost and maximize the gains. Scientific forecasting implies some combination of objective calculations and subjective judgments to arrive at the desired results. Different mathematical and statistical tools are available to forecast the demand on the basis of linear programming to minimize the cost factor. In the present case study efforts are made to find the applicability of the mathematical modeling and statistical tools in the medium manufacturing industry.