Determination of the Safety Stock for Intermittent Demand: the Grey and Hybrid Theories

This study seeks to introduce the influential factors in controlling and dealing with uncertainty in intermittent demand. Hybrid forecasting and Grey Theory have been used simultaneously due to their potential in facing complex nature and insufficient data. Different modeling and unbiased weighting results have been used to estimate the safety stock(SS) by theoretical and experimental methods. In other words, this work deals with the less studied feature of various modeling errors and their effect on SS determination and recommends its use to address the uncertainty of intermittent demand as a criterion for introducing a superior model in the field of inventory.