Croston’s Intermittent Model
Croston’s Intermittent Model is specifically designed to deal with sporadic demand (no seasonality) with a two-step process. The main goal is to provide a good safety stock, resulting in a situation where there is neither over or under stock. This is accomplished by considering two aspects of the data: the demand size and the demand occurrence. Croston’s Intermittent model recognizes both the sporadic timing of inventory and that the average order is actually a misrepresentation if it is spread evenly over the number of days.