10.4225/03/59378c034fa46 Shenstone, Lydia Lydia Shenstone Hyndman, Rob J. Rob J. Hyndman Stochastic models underlying Croston's method for intermittent demand forecasting Monash University 2017 Forecasting 2003 monash:2328 Croston's method 1959.1/2328 Intermittent demand Exponential smoothing 2017-06-07 05:15:46 Journal contribution https://bridges.monash.edu/articles/journal_contribution/Stochastic_models_underlying_Croston_s_method_for_intermittent_demand_forecasting/5085139 Croston's method is a widely used to predict inventory demand when it is intermittent. However, it is an ad hoc method with no properly formulated underlying stochastic model. In this paper, we explore possible models underlying Croston's method and three related methods, and we show that any underlying model will be inconsistent with the properties of intermittent demand data. However, we find that the point forecasts and prediction intervals based on such underlying models may still be useful..