Journal ArticleDOI
Forecasting and Inventory Control for Sporadic Demand Under Periodic Review
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In this paper, a forecasting procedure is presented, to be used in conjunction with a base-stock (order-up-to) inventory control policy under periodic review, to determine the size and timing of replenishment orders.Abstract:
A sporadic or lumpy demand pattern is characterized by large transactions separated by periods of zero demand. Such demand patterns occur frequently for items in parts and supplies inventory systems. A forecasting procedure is presented, to be used in conjunction with a base-stock (order-up-to) inventory-control policy under periodic review. The procedure determines the size and timing of replenishment orders. Although a base-stock policy calls for a replenishment order after each transaction, it is shown that a delay in placing the order can result in significant holding-cost reductions with little additional risk or cost of stockouts.read more
Citations
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Journal ArticleDOI
The accuracy of intermittent demand estimates
Argyrios Syntetos,John E. Boylan +1 more
TL;DR: In this article, four forecasting methods, Simple Moving Average (SMA), 13 periods, Single Exponential Smoothing (SES), and a new method (based on Croston's approach) were compared on 3000 real intermittent demand data series from the automotive industry.
Journal ArticleDOI
A new approach to forecasting intermittent demand for service parts inventories
TL;DR: In this paper, a new type of time series bootstrap is proposed to forecast the cumulative distribution of demand over a fixed lead time using a new set of time-series bootstraps.
Journal ArticleDOI
On the categorization of demand patterns.
TL;DR: Comparison results are based on a theoretical analysis of the mean square error due to its mathematically tractable nature and the categorization rules proposed are expressed in terms of the average inter-demand interval and the squared coefficient of variation of demand sizes.
Journal ArticleDOI
Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice
Andrea Bacchetti,Nicola Saccani +1 more
TL;DR: In this paper, the gap between research and practice in spare parts management, with specific reference to durable goods addressed to private or professional customers, is investigated, and a critical literature review of theoretical contributions about spare parts classification and demand forecasting for stock control is provided.
Journal ArticleDOI
Forecasting intermittent demand in manufacturing: a comparative evaluation of Croston's method
TL;DR: In this article, the authors compared the performance of Croston's method and exponential smoothing with real-world data from industrial sources and concluded that Croston is robustly superior to exponential smoothed and could provide tangible benefits to manufacturers forecasting intermittent demand.
References
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Book
Decision Systems for Inventory Management and Production Planning
TL;DR: In this article, an in-depth discussion of the major decisions in production planning, scheduling, and inventory management faced by organizations, both private and public, is presented, as well as the latest systems used to make decisions, including Just-in-Time Manufacturing, KANBAN, Distribution Requirements Planning and PUSH Control.
Journal ArticleDOI
Forecasting and Stock Control for Intermittent Demands
TL;DR: In this article, a method of overcoming these difficulties is described, using separate estimates of the size of demand, and of the demand frequency, and the rules for setting the safety stock levels have also to be adjusted before consistent protection can be obtained against being out of stock.
Journal ArticleDOI
s, S Policies Under Continuous Review and Discrete Compound Poisson Demand
TL;DR: In this article, the authors consider a continuous review system with discrete compound Poisson demand, convex holding-penalty cost and fixed order cost and develop recursive formulae to calculate the cost for any pair s, S.
Journal ArticleDOI
Determining Reorder Points When Demand is Lumpy
TL;DR: In this paper, a simple, easily used regression model is presented to calculate order points for lumpy items from knowledge of demand parameters and the desired service level, derived from the particular compound Poisson distribution commonly called stuttering Poisson.
Journal ArticleDOI
Reorder Levels for Lumpy Demand
TL;DR: In this article, when gamma-distributed sized orders arrive stochastically, with usually no more than one during a lead-time, approximate expressions for the optimum reorder level and resulting expected stock-out were derived.