How to Forecast Intermittent Products

This article explores one of the most challenging problems in supply chain management: forecasting intermittent demand. We first delve into the intricacies and root causes of erratic sales patterns. Then, we critically examine traditional forecasting methods (Croston) and metrics (MAPE or WMAPE), highlighting their limitations in the face of unpredictability. Ultimately, we propose strategies that will enhance your forecasting accuracy amid demand volatility and provide tactics to optimize your supply chain for increased resilience to intermittent orders.

Note to the reader: this article is twice as long as usual. Dealing with intermittent sales is challenging and requires a holistic approach: I am presenting you with a complete, step-by-step guide on how to cope with this.

Navigating the Complexity of Intermittent Demand

In the realm of supply chain management, products with intermittent demand pose specific challenges to…