It is easier to predict demand when there’s a pattern. But in case of irregular or intermittent demand the simple technique of smoothing does not work.
Croston’s forecasting method is a standard approach to deal with intermittent demand. It detects the cyclic pattern of demand and divides the period into 2 time series:
1. Zero demand values
2. Non zero demand values
Then demand smoothing is used on both time series separately and demand is forecasted. … Croston Method