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2.3.3 Summary

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Before setting stock levels for intermittent demand items, a decision should be taken as to whether an item should be stocked at all. In some situations, keeping zero stock is not an option. Otherwise, an evaluation of demand is required to determine whether the item should be stocked. Such decisions are typically based on a forecast of the mean demand (discussed in Chapter 6), requiring no estimates of the variability of demand (discussed in Chapter 7), which may be required when deciding on replenishment quantities.

Intermittent Demand Forecasting

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