OPTIMAL LINEAR INVENTORY CONTROL AND FIRST ORDER EXPONENTIAL SMOOTHING,

Abstract

A linear, fixed-interval stock replenishment policy that achieves an optimal cost balance between inventory and order-level variance is derived. One form of the reorder rule relies on first order exponential smoothing to predict the random components of the demand sequence, which are assumed to be pairwise uncorrelated with mean zero and variance that either grows or decays geometrically, or remains constant in time. (Author)

Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1965
Accession Number
AD0623825

Entities

People

  • B. M. Johnson
  • Dale M. Landi

Organizations

  • RAND Corporation

Tags

DTIC Thesaurus Topics

  • Connecticut
  • Cooperation
  • Intervals
  • Inventory
  • Inventory Control
  • Replenishment
  • Sequences

Fields of Study

  • Mathematics

Readers

  • Linear Algebra
  • Logistics and Supply Chain Management.
  • Regression Analysis.