Accession Number : AD0710994

Title :   AN OPTIMUM METHOD FOR COMBINING A DEMAND FORECAST D WITH RANDOM DEMAND D WHEN SETTING COMMODITY REORDER LEVELS.

Descriptive Note : Technical rept.,

Corporate Author : FLORIDA UNIV GAINESVILLE DEPT OF INDUSTRIAL AND SYSTEMS ENGINEERING

Personal Author(s) : Patterson,Richard L.

Report Date : JUN 1970

Pagination or Media Count : 25

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)

Descriptors :   (*REPLACEMENT THEORY, OPTIMIZATION), COSTS, MATRICES(MATHEMATICS), DISTRIBUTION FUNCTIONS, UNCERTAINTY

Subject Categories : Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE