Forecasting lumpy demand created by order batching : a comparative study.

Abstract

This study is concerned with a common forecasting problem faced by organisations - lumpy demand, an infrequent and irregular demand pattern. The study attempts to carry out a comparative study between three forecasting methods, namely EWMA, Croston's Method and the research's proposed method, to determine which method produces optimum results based on forecast variation under different patterns of demand lumpiness.