Accession Number : AD0638026
Title : OPTIMAL LINEAR INVENTORY CONTROL AND FIRST ORDER EXPONENTIAL SMOOTHING.
Corporate Author : RAND CORP SANTA MONICA CALIF
Personal Author(s) : Landi,Dale M. ; Johnson,B. McK.
Report Date : AUG 1966
Pagination or Media Count : 13
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)
Descriptors : (*INVENTORY CONTROL, OPTIMIZATION), (*NUMERICAL ANALYSIS, INVENTORY CONTROL), MANAGEMENT PLANNING AND CONTROL, INVENTORY CONTROL
Subject Categories : Numerical Mathematics
Distribution Statement : APPROVED FOR PUBLIC RELEASE