Abstract

One aspect of forecasting intermittent demand for slow-moving inventory that has not been investigated to any depth in the literature is seasonality. This is due in part to the reliability of computed seasonal indexes when many of the periods have zero demand. This chapter proposes an innovative approach which adapts Croston's (1970) method to data with a multiplicative seasonal component. Adaptations of Croston's (1970) method are popular in the literature. This method is one of the most popular techniques to forecast items with intermittent demand. A simulation is conducted to examine the effectiveness of the proposed technique extending Croston's (1970) method to incorporate seasonality.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call