Classification for forecasting and inventory

Syntetos, Aris and Boylan, John and Teunter, Ruud (2011) Classification for forecasting and inventory. Foresight: The International Journal of Applied Forecasting, 20. pp. 12-17. ISSN 1555-9068

Abstract

ABC classifications are commonly used to streamline a large number of SKUs into fewer, more manageable categories. As Aris, John, and Ruud explain, this classification may be useful for inventory control, but it does not provide much help in the selection of appropriate forecasting methods. The authors demonstrate a need for a classification that accounts for demand patterns and customer characteristics. Copyright International Institute of Forecasters, 2011