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 variances is derived in this paper. The reorder rule relies on first order exponential smoothing to predict 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
Aug 01, 1966
Accession Number
AD0638026

Entities

People

  • B. Mck. Johnson
  • Dale M. Landi

Organizations

  • RAND Corporation

Tags

DTIC Thesaurus Topics

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

Fields of Study

  • Mathematics

Readers

  • Approximation Theory.
  • Logistics and Supply Chain Management.