On the interaction between forecasting and stock control: The case of non-stationary demand

L.W.G. Strijbosch, A.A. Syntetos, J.E. Boylan, E. Janssen

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The effect of using estimated (forecast) demand parameters on the performance of an inventory control system is an intriguing and important subject. Recent research has been undertaken on this phenomenon assuming stationary demand data. In this paper we extend the research to non-stationary demands, by means of simulation. The case of a periodic order-up-to-level inventory system is considered and the experimental structure allows us to evaluate in a progressive manner the accumulated effect of using the optimal forecasting method, optimal forecast parameters and correct variance expression procedures. The results allow insights to be gained into operational issues and demonstrate the scope for improving stock control systems.
Original languageEnglish
Pages (from-to)470-480
JournalInternational Journal of Production Economics
Volume133
Issue number1
DOIs
Publication statusPublished - 2011

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Inventory control
Control systems
Stock control
Non-stationary demand
Interaction
Forecasting method
Simulation
Demand forecast
Inventory systems

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Strijbosch, L.W.G. ; Syntetos, A.A. ; Boylan, J.E. ; Janssen, E. / On the interaction between forecasting and stock control : The case of non-stationary demand. In: International Journal of Production Economics. 2011 ; Vol. 133, No. 1. pp. 470-480.
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On the interaction between forecasting and stock control : The case of non-stationary demand. / Strijbosch, L.W.G.; Syntetos, A.A.; Boylan, J.E.; Janssen, E.

In: International Journal of Production Economics, Vol. 133, No. 1, 2011, p. 470-480.

Research output: Contribution to journalArticleScientificpeer-review

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