Forecasting Intermittent Demand by Markov Chain Model

---

Copy For Citation

UZUNOĞLU KOÇER U. Z.

INTERNATIONAL JOURNAL OF INNOVATIVE COMPUTING, INFORMATION AND CONTROL, vol.9, no.8, pp.3307-3318, 2013 (Scopus)

• Publication Type: Article / Article
• Volume: 9 Issue: 8
• Publication Date: 2013
• Journal Name: INTERNATIONAL JOURNAL OF INNOVATIVE COMPUTING, INFORMATION AND CONTROL
• Journal Indexes: 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 pro-posed 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.