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A systemic view of the ADIDA framework

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<mark>Journal publication date</mark>2014
<mark>Journal</mark>IMA Journal of Management Mathematics
Issue number2
Volume25
Number of pages13
Pages (from-to)125-137
Publication statusPublished
Original languageEnglish

Abstract

This paper is an attempt to gain mathematical insight into the ADIDA (Aggregate-Disaggregate Intermittent Demand Approach) forecasting framework, by formulating it as a multi-rate signal processing system. After a brief synopsis of the framework’s background, an alternative way to perceive ADIDA from a systemic viewpoint is derived by breaking down its managerial steps into fundamental, well-studied components. Mathematical properties stemming from each separate system block are then thoroughly explored and their practical effects are exemplified through simulated paradigms of common time series patterns. Subsequently, theoretical and practical evidence are combined to draw useful conclusions about the framework’s performance and make suggestions on its application. Finally, guidelines for further research are proposed.