Method
ADI is total periods divided by nonzero-demand periods. CV² is the population variance of nonzero demand sizes divided by their squared mean. This screen uses the traditional 1.32 ADI and 0.49 CV² classification boundaries: smooth, intermittent, erratic, or lumpy.
Interpretation
The class describes this sample; it does not automatically select a method or inventory policy. A stocked-out period can look like zero demand, so run the censoring audit first when availability was incomplete. Then compare methods with the rolling backtest.
Worked example and limits
The sample has 24 monthly periods and eight nonzero observations, so ADI is 3. A small sample, aggregation choice, new item, supersession, or changing installed base can move the class. The thresholds are a published convention, not a service-level or stocking rule.