iarjetIARJETIARJET2708-5163https://doi.org/10.47310/iarjet.2022.v03i01.011Reducing Inventory Cost through Demand Forecasting and Economic Production Quantity Model: A Case StudyMinhNguyenThanhMinhNguyen AnhNhatNhiNguyen HoangYenThaoNgo TranThuNiVo ThiHoangHienDoNgocThis paper aims at analyzing and solving the problems of high inventory costs in a packaging manufacturing company. The reason is derived from ineffective current inventory management model. History sales and inventory data show that the company monthly wastes around 80% of total stock. The proposed method for the company involves choosing a suitable forecast technique and developing an inventory model using the Economic Production Quantity Model. The results show that the proposed approach helps reduce inventory costs from 308 millions VND to 239 millions VND, which saves 22% of the total cost. Besides, the safety stock inventory model prevents the company from profit loss and customer loss due to out-of-stock and pushes inventory turnover.