Posted in Finance, Accounting and Economics Terms, Total Reads: 522
Definition: Intermittent Demand
The demand which is unpredictable, infrequent ,uncertain and irregular is called the intermittent demand. This demand is also referred to as the sporadic demand. The timing and the size of the demand is not certain. There are several periods where the demand for products is zero. E.g. the heavy machinery industry.
Efficient forecasting is important for eliminating the problems associated with intermittent demand. The goods associated with intermittent demand cannot be really stopped manufacturing because if someone asks for a good with a sporadic demand, it not only costs a sale but also a customer. Equally important is the management of excess inventory of the product. Hence efficient predicting is important. One approach can be to analyse the historical data and find patterns of intermittent time series and then transform them into conventional ones.
This eliminates the zero demand periods . Another solution can be the application of neutral networks on the intermittent demand problem.. There are various software tools available for predicting intermittent demand.