Intermittent Demand Forecasting Using LSTM With Single and Multiple Aggregation

Abstract

Intermittent demand data is data with infrequent demand with varying number of demand sizes. Intermittent demand forecasting is useful for providing inventory control decisions. It is very important to produce accurate forecasts. Based on previous research, deep learning models, especially MLP and RNN-based architectures, have not been able to provide better intermittent data forecasting results compared to traditional methods. This research will focus on analyzing the results of intermittent data forecasting using deep learning with several levels of aggregation and a combination of several levels of aggregation. In this research, the LSTM model is implemented into two traditional models that use aggregation techniques and are specifically used for intermittent data forecasting, namely ADIDA and MAPA. The result, based on tests on the six predetermined data, the LSTM model with aggregation and disaggregation is able to provide better test results than the LSTM model without aggregation and disaggregation.