Forecasting System at IKEA Jönköping

Abstract: This thesis has been performed at IKEA Jönköping. The purpose was to identify what kind of forecasting system IKEA Jönköping is using and analyze its problems. The data collection was based on interviews with a total of 6 people working at IKEA Jönköping, IKEA of Sweden (IOS) in Älmhult and observation at the Sales Supply Support division (SSS).  From the empirical study several problems were identified linked with the performance of the forecasting. Problems with understanding the initial forecast from IOS were identified and this was because of lack of information about demand. SSS also wanted to know their local market in a better way this to be able to make more accurate forecast. Finally all the departments at IKEA Jönköping which were working with forecasting wanted a closer collaboration between SSS, sales and the logistics department also wanted to have better information exchange. The result from this thesis explain what kind of forecasting system IKEA Jönköping is using and gives suggestions to solve the problems mentioned above. We have highlighted the importance of having a closer collaboration between IOS and IKEA Jönköping and between the different departments working with forecasting. Furthermore we have explained the importance of creating guidelines and routines regarding the forecasts and the flow of information. By considering our solutions presented in this thesis we think that the problems addressed above could be managed and hopefully lead towards a better forecasting performance at IKEA Jönköping.