Adapting Wright's modification of Holt's method to forecasting intermittent demand

Adapting Wright's modification of Holt's method to forecasting intermittent demand

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Article ID: iaor2009739
Country: Netherlands
Volume: 111
Issue: 2
Start Page Number: 389
End Page Number: 408
Publication Date: Jan 2008
Journal: International Journal of Production Economics
Authors: , ,
Keywords: spare parts
Abstract:

The challenge of accurately forecasting demand for spare parts is due to the intermittent nature of their demand. This study compares a recent modification of Croston's method and a method based on Holt's double exponential smoothing taking the firm's competitive priorities into consideration. Wright's modification of Holt's method is presented as a viable alternative when forecasting demand for spares especially when trend is present.

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