Another look at estimators for intermittent demand

Research output: Contribution to journalArticlepeer-review

Standard Standard

Another look at estimators for intermittent demand. / Petropoulos, Fotios; Kourentzes, Nikolas; Nikolopoulos, Konstantinos.
In: International Journal of Production Economics, Vol. 181, No. Part A, 01.11.2016, p. 154-161.

Research output: Contribution to journalArticlepeer-review

HarvardHarvard

Petropoulos, F, Kourentzes, N & Nikolopoulos, K 2016, 'Another look at estimators for intermittent demand', International Journal of Production Economics, vol. 181, no. Part A, pp. 154-161. https://doi.org/10.1016/j.ijpe.2016.04.017

APA

Petropoulos, F., Kourentzes, N., & Nikolopoulos, K. (2016). Another look at estimators for intermittent demand. International Journal of Production Economics, 181(Part A), 154-161. https://doi.org/10.1016/j.ijpe.2016.04.017

CBE

Petropoulos F, Kourentzes N, Nikolopoulos K. 2016. Another look at estimators for intermittent demand. International Journal of Production Economics. 181(Part A):154-161. https://doi.org/10.1016/j.ijpe.2016.04.017

MLA

Petropoulos, Fotios, Nikolas Kourentzes and Konstantinos Nikolopoulos. "Another look at estimators for intermittent demand". International Journal of Production Economics. 2016, 181(Part A). 154-161. https://doi.org/10.1016/j.ijpe.2016.04.017

VancouverVancouver

Petropoulos F, Kourentzes N, Nikolopoulos K. Another look at estimators for intermittent demand. International Journal of Production Economics. 2016 Nov 1;181(Part A):154-161. Epub 2016 Apr 21. doi: 10.1016/j.ijpe.2016.04.017

Author

Petropoulos, Fotios ; Kourentzes, Nikolas ; Nikolopoulos, Konstantinos. / Another look at estimators for intermittent demand. In: International Journal of Production Economics. 2016 ; Vol. 181, No. Part A. pp. 154-161.

RIS

TY - JOUR

T1 - Another look at estimators for intermittent demand

AU - Petropoulos, Fotios

AU - Kourentzes, Nikolas

AU - Nikolopoulos, Konstantinos

PY - 2016/11/1

Y1 - 2016/11/1

N2 - In this paper we focus on forecasting for intermittent demand data. We propose a new aggregation framework for intermittent demand forecasting that performs aggregation over the demand volumes, in contrast to the standard framework that employs temporal (over time) aggregation. To achieve this we construct a transformed time series, the inverse intermittent demand series. Thenew algorithm is expected to work best on erratic and lumpy demand, as a result of the variance reduction of the non-zero demands. The improvement in forecasting performance is empirically demonstrated through an extensive evaluation in more than 8,000 time series of two well-researched spare parts data sets from the automotive and defence sectors. Furthermore, a simulation is performed so as to provide a stock-control evaluation. The proposed framework could nd popularity among practitioners given its suitability when dealing with clump sizes. As such it could be used in conjunction with existing popular forecasting methods for intermittent demand as an exception handling mechanism when certain types of demand are observed.

AB - In this paper we focus on forecasting for intermittent demand data. We propose a new aggregation framework for intermittent demand forecasting that performs aggregation over the demand volumes, in contrast to the standard framework that employs temporal (over time) aggregation. To achieve this we construct a transformed time series, the inverse intermittent demand series. Thenew algorithm is expected to work best on erratic and lumpy demand, as a result of the variance reduction of the non-zero demands. The improvement in forecasting performance is empirically demonstrated through an extensive evaluation in more than 8,000 time series of two well-researched spare parts data sets from the automotive and defence sectors. Furthermore, a simulation is performed so as to provide a stock-control evaluation. The proposed framework could nd popularity among practitioners given its suitability when dealing with clump sizes. As such it could be used in conjunction with existing popular forecasting methods for intermittent demand as an exception handling mechanism when certain types of demand are observed.

U2 - 10.1016/j.ijpe.2016.04.017

DO - 10.1016/j.ijpe.2016.04.017

M3 - Article

VL - 181

SP - 154

EP - 161

JO - International Journal of Production Economics

JF - International Journal of Production Economics

SN - 0925-5273

IS - Part A

ER -