White Paper - Some Solutions for Forecasting Intermittent Demand
Over the years, I’ve identified at least 9 different “product demand patterns” that need to be (1) identified, (2) understood and (3) addressed. Note that “identified” is the key first step. Many wholesale distributors don’t choose to or don’t possess a demand analysis capability that reliably identifies a specific product’s demand pattern type. In fact, in a typical wholesale-distribution environment, a product demand pattern that is particularly perplexing - probably occurs more than you think - and therefore poses real forecasting challenges - is intermittent demand. I simply call it “lumpy demand”. Many ERP systems don’t provide a forecasting solution, at all, for lumpy demand patterns. Does yours?
Howard W. Coleman has worked with over 145 clients in distribution management and manufacturing consulting engagements.