AN OPTIMUM METHOD FOR COMBINING A DEMAND FORECAST D WITH RANDOM DEMAND D WHEN SETTING COMMODITY REORDER LEVELS.
Abstract
A method for establishing optimal item replenishment levels in the presence of noise demand data developed by Morey and Iglehart is reinterpreted when noisy demand is in practice a demand forecast. Three alternatives for modeling the joint behavior of demand and a forecast of demand are given and the conditions under which an adjunct forecast reduces average operating cost are reported. The results and conclusions do not depend upon the underlying mechanism for generating the demand forecast. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1970
- Accession Number
- AD0710994
Entities
People
- Richard L. Patterson
Organizations
- University of Florida