A simulation-optimisation framework for determining a best strategy in inventory decision making and demand forecasting for intermittent demand

Abstract

Demand forecasting is one or the most crucial as. pects of inventory management. For intermittent demand, i.e. demand peaks Follow several periods of zero or low demands, forecasting is difficult. Furthermore, uncertainty in supply is often not taken into account. A simulation model is used to study a single-product inventory system facing demand of the, intermittent; type and dealing with an unreliable supplier. In this paper, a research approach is described to Ad a best strategy hi combining inventory decision making and demand forecasting for intermittent demand.