September 2015
Beginner to intermediate
336 pages
7h 44m
English
book
The Best Thinking in Business Analytics from the Decision Sciences Institute
by Decision Sciences Institute, Merrill Warkentin
Content preview from The Best Thinking in Business Analytics from the Decision Sciences Institute
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12. An Evaluation of Croston’s Method under Non-Stationary Demand Behavior
—Matthew Lindsey, Stephen F. Austin State University
—Robert Pavur, University of North Texas
Abstract
Intermittent-demand data—that is, series with many periods in which no demand occurs—is problematic for accurately modeling and predicting future demand. Croston’s method is generally viewed as the “standard” method for intermittent-demand forecasting. Despite almost two decades of proposed modifications and assessments of drawbacks of this procedure, clear guidelines as to its performance under a wide variety of modeling assumptions are lacking. In this study, an assessment of Croston’s method is conducted in a simulation study to evaluate its comparative performance ...
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