Authors
Chongshou Li, Andrew Lim
Publication date
2018/9/16
Journal
European Journal of Operational Research
Volume
269
Issue
3
Pages
860-869
Publisher
North-Holland
Description
In this study, we solve a real-world intermittent demand forecasting problem for a fashion retailer in Singapore, where it has been operating retail stores and a warehouse for several decades. The demand for each stock keeping unit (SKU) at each store on each day needs to be determined to develop an effective and efficient inventory and logistics system for the retailer. The SKU-store-day demand is highly intermittent. In order to solve this challenging intermittent demand forecasting problem, we propose a greedy aggregation–decomposition method. It involves a new hierarchical forecasting structure and utilizes both aggregate and disaggregate forecasts, which differs from the classical bottom-up and top-down approach. The method is investigated on the real-world SKU-store-day demand database from this retailer in Singapore, and significantly outperforms other widely used intermittent demand forecasting …
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