Spare Part Demand Forecasting in Automotive Industry Using Artificial Neural Network

The development of business in Indonesia today has developed rapidly, resulting the competition in the business become very competitive. One of the business line that currently developing rapidly is automotive industry. Each of automotive company trying to be able to win the hearts of customer with all the best offers and services, so they remain loyal to the product of company. A good management system needs to respond for local, regional, and national markets demand quickly. If business cannot fulfill the market demand quickly, the customer may change their willingness for purchase the products or services that sold by the company. In this paper, an Artificial Neural Network (ANN) was designed to help automotive distributor company predict Spare Part demand in each of Province in Indonesia. ANN was chosen since the method can model the situations, where highly nonlinear relationships among the variables can be captured.