Intermittent Demand Forecasting Blog

Forecast intermittent product demand and determine the optimal inventory level

Managing Demand Variability

Managing Demand Variability

Anybody doing the job knows that managing inventory can be stressful. Common stressors include: Customers with “special” requests, IT departments with other priorities, balky ERP systems running on inaccurate data, raw material shortages, suppliers with long lead times in far-away countries where production often stops for various reasons and more. This note will address one particular and ever-present source of stress: demand variability.

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The Advantages of Probability Forecasting

The Advantages of Probability Forecasting

Most demand forecasts are partial or incomplete: They provide only one single number: the most likely value of future demand. This is called a point forecast. Usually, the point forecast estimates the average value of future demand. Much more useful is a forecast of full probability distribution of demand at any future time. This is more commonly referred to as probability forecasting and is much more useful.

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Recent Posts

  • Service Level Driven Planning (SLDP) is an approach to inventory planning.Want to Optimize Inventory? Follow These 4 Steps
    Service Level Driven Planning (SLDP) is an approach to inventory planning based on exposing the tradeoffs between SKU availability and inventory cost that are at the root of all wise inventory decisions. When organizations understand these tradeoffs, they can make better decisions and have greater variability into the risk of stockouts. SLDP unfolds in four steps: Benchmark, Collaborate, Plan, and Track. […]
  • Epicor Webinar: Maximize Revenue and Minimize Inventory Costs with Epicor Smart IP&OWebinar: Maximize Revenue and Minimize Inventory Costs
    Please join our webinar featuring Greg Hartunian, CEO of Smart Software, who will explain how optimization works and how it compares to traditional approaches that pick an arbitrary service level target.  . . […]