The project titled“Selecting a forecasting model for a forging industry” was undertaken in orderto reduce the cost of excess inventory in the industry using aspects of Production Planning andcontrol& then develop an appropriate forecasting model such that the unnecessary inventorycost is reduced or eliminated. All the data concerned with the procurement of material andinventory related cost were taken from the purchasing and accounts department of forgingindustry . After analysing the data we applied three forecasting models as MA , WMA ,Exponential smoothing . We evaluated each model using the forecast errors (MAD, MAPE andMSE) and then we found out the model with minimum error.and it impact on inventory costsaving.The forging industry's capacity to reduce excess inventory and associated costs is the focus ofthis study, which investigates the effects of implementing advanced forecasting models andimproving inventory management strategies. The task is to accomplish significant expensedecreases and functional enhancements by executing FIFO stock frameworks and dramaticsmoothing to adjust creation to real market interest. The outcomes exhibit the benefits ofinformation-driven direction by showing huge abatements in stock levels and monetarymisfortunes because of inventory. The need for exact verifiable information, effective changein the executives, and the chance of stockouts were, notwithstanding, featured as impediments.In conclusion, the research demonstrates that accurate demand forecasts and efficient inventorymanagement are crucial to increasing the forging industry's competitiveness, as well as areasin which the sector must continue to improve.