Forecasting intermittent demand by Markov chain model
International Journal of Innovative Computing, Information and Control, vol.9, no.8, pp.3307-3318, 2013 (SCI-Expanded, Scopus)
- Publication Type: Article / Article
- Volume: 9 Issue: 8
- Publication Date: 2013
- Journal Name: International Journal of Innovative Computing, Information and Control
- Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
- Page Numbers: pp.3307-3318
- Keywords: Forecasting, Intermittent, Lead time, Markov chain model, Transition probability
- Dokuz Eylül University Affiliated: Yes
Abstract
The inventory control of the products which have intermittent demand is essential for many organizations since these items have a low lead time demand but a high price. Since the intermittent demand pattern is irregular, the estimation of the lead time demand is challenging. A modified Markov chain model (MMCM) has been proposed for modeling and estimating intermittent demand data, motivated by a case study. The performance of MMCM and the traditional methods have been compared by accuracy measures. The results reveal that the proposed method is a good competitor or even better than other methods. © 2013 ICIC International.