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On The Demand Distributions Of Spare Parts, A A. Syntetos, M Z. Babai, Nezih Altay
On The Demand Distributions Of Spare Parts, A A. Syntetos, M Z. Babai, Nezih Altay
Nezih Altay
Spare parts have become ubiquitous in modern societies, and managing their requirements is an important and challenging task with tremendous cost implications for the organisations that are holding relevant inventories. Demand for spare parts arises whenever a component fails or requires replacement, and as such the relevant patterns are different from those associated with ‘typical’ stock keeping units. Such demand patterns are most often intermittent in nature, meaning that demand arrives infrequently and is interspersed by time periods with no demand at all. A number of distributions have been discussed in the literature for representing these patterns, but empirical evidence …
Effects Of Correlation On Intermittent Demand Forecasting And Stock Control, Nezih Altay, Lewis A. Litteral, Frank Rudisill
Effects Of Correlation On Intermittent Demand Forecasting And Stock Control, Nezih Altay, Lewis A. Litteral, Frank Rudisill
Nezih Altay
This study investigates the effects of three different types of correlation on forecasting and stock control of intermittent demand items. Applying appropriate forecasting and stock control methods to theoretically generated compound Poisson demand data we show that correlation in intermittent demand does play a role in forecast quality and stock control performance. Negative autocorrelation levels lead to higher service levels than positive values, while cost does not significantly change. Our results also show that high intermittency levels intensify these changes in service level. We also show that cross-correlation produces results in the opposite direction of autocorrelation in size or intervals; …