Towards a best strategy in inventory decision making and demand forecasting for intermittent demand

Abstract

Demand forecasting is one of the most crucial aspects of inventory management. For intermittent demand, i.e. demand peaks follow several periods of zero or low demands, forecasting is difficult. A simulation model is used to study a single-product inventory system facing demand of the intermittent type. In this paper, a research approach is described to find a best strategy in combining inventory decision making and demand forecasting for intermittent demand.