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1.3.1 Early Forecasting Software

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Early forecasting software solutions in the 1950s and 1960s were based on single exponential smoothing (SES) (a method that is discussed in detail in Chapter 6), meaning that intermittent demand items were not treated any differently from fast‐moving items. SES is a method devised for fast‐moving items that exhibit no trend or seasonality. It is a very practical forecasting method for these items, and is included in the vast majority of (inventory) forecasting software applications. It is still used for intermittent demand, although we shall see in Chapter 6 that it is not a natural method for these items and it does suffer from some major weaknesses.

Intermittent Demand Forecasting

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