Application of Grey Jump Model to forecast fluctuating inventory demand

This paper proposes a model that is grey jump model based on the central-approximant grey model and liner regression model. Because some products are characteristic of short life-cycle and large demand-fluctuation, it carries the forecast on jumping points with Central-approximant Grey Model and other non-jumping points with liner regression model. Finally, it puts these two parts together to forecast and testifies that the model has high precision as well as coordinates the practice well. So this paper provides an effective method for forecasting on the inventory demand which fluctuate sharply.