Paper Info
Title
An aggregate-disaggregate intermittent demand approach (ADIDA) to forecasting: an empirical proposition and analysis
Abstract
Intermittent demand patterns are characterised by infrequent demand arrivals coupled with variable demand sizes. Such patterns prevail in many industrial applications, including IT, automotive, aerospace and military. An intuitively appealing strategy to deal with such patterns from a forecasting perspective is to aggregate demand in lower-frequency 'time buckets' thereby reducing the presence of zero observations. However, such aggregation may result in losing useful information, as the frequency of observations is reduced. In this paper, we explore the effects of aggregation by investigating 5000 stock keeping units from the Royal Air Force (UK). We are also concerned with the empirical determination of an optimum aggregation level as well as the effects of aggregating demand in time buckets that equal the lead-time length (plus review period). This part of the analysis is of direct relevance to a (periodic) inventory management setting where such cumulative lead-time demand estimates are required. Our study allows insights to be gained into the value of aggregation in an intermittent demand context. The paper concludes with an agenda for further research. Journal of the Operational Research Society (2011) 62, 544-554. doi:10.1057/jors.2010.32 Published online 28 April 2010
Year
DOI
Venue
2011
10.1057/jors.2010.32
JORS
Keywords
Field
DocType
demand forecasting,inventory management,intermittent demand,aggregation,empirical investigation
Demand patterns,Demand forecasting,Computer science,Stock keeping unit,Inventory control,Demand management,Purchasing,Aggregate demand,Market demand schedule,Operations management
Journal
Volume
Issue
ISSN
62
3
0160-5682
Citations 
PageRank 
References 
14
1.20
8
Authors
5
Name
Order
Citations
PageRank
Konstantinos Nikolopoulos113317.37
Aris A. Syntetos216614.78
John E. Boylan3665.63
Fotios Petropoulos4638.03
Vassilis Assimakopoulos510211.77