Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 47, Issue 2, Pages 415-433Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207540802426383
Keywords
Inventory systems; Control policy; MRP; Non-stationary demand; Forecasts; Forecast uncertainty
Ask authors/readers for more resources
In this paper, two approaches of production-inventory control are considered: the future requirements-based approach and the inventory consumption-based approach. We focus on a single-stage and single-item inventory system under non-stationary demand, information about which is provided by means of forecasts. Forecasts and forecast uncertainties are assumed to be exogenous data known in advance at each period over a forecasting horizon. Three forecast-based dynamic inventory control policies are analysed. These dynamic policies are extensions of the standard static re-order point and order-up-to-level policies that have been developed under the stationary demand assumption. The policies' parameters are derived by using a sequential optimization procedure. A numerical investigation is conducted based on theoretical generated data; the results demonstrate the benefit of using the dynamic policies when compared with the static ones. Connections between the analysed policies are also highlighted.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available