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Periodic control of intermittent demand items: theory and empirical analysis

Syntetos, A, Babai, MZ, Dallery, Y and Teunter, R 2009, 'Periodic control of intermittent demand items: theory and empirical analysis' , Journal of the Operational Research Society, 60 (5) , pp. 611-618.

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In this paper we propose a modification to the standard forecasting, periodic order-up-to-level inventory control approach to dealing with intermittent demand items, when the lead-time length is shorter than the average interdemand interval. In particular, we develop an approach that relies upon the employment of separate estimates of the inter-demand intervals and demand sizes, when demand occurs, directly for stock control purposes rather than first estimating mean demand and then feeding the results in the stock control procedure. The empirical performance of our approach is assessed by means of analysis on a large demand data set from the Royal Air Force (RAF, UK). Our work allows insights to be gained on the interactions between forecasting and stock control as well as on demand categorization-related issues for forecasting and inventory management purposes.

Item Type: Article
Uncontrolled Keywords: Intermittent demand, forecasting, periodic stock control, military logistics, lead-time
Themes: Subjects outside of the University Themes
Schools: Colleges and Schools > College of Business & Law > Salford Business School > Operations and Information Management
Journal or Publication Title: Journal of the Operational Research Society
Publisher: Palgrave Macmillan
Refereed: Yes
ISSN: 0160-5682
Funders: Engineering and Physical Sciences Research Council (EPSRC)
Depositing User: Professor Aris Syntetos
Date Deposited: 13 Oct 2011 10:24
Last Modified: 28 Jul 2015 17:37

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