Forecasting the forecastability quotient for inventory management

Arthur V. Hill, Weiyong Zhang and Gerald F. Burch

International Journal of Forecasting, 2015, vol. 31, issue 3, 651-663

Abstract: This research develops and empirically tests a model for estimating the economic advantage of using a time phased order point system (TPOP) with time series forecasting rather than a simple reorder point system in an independent demand inventory management context. We define the forecastability quotient (Q) to support this economic analysis. We implement TPOP in our empirical analysis via double exponential smoothing with a damped trend, and implement ROP through a simple moving average.

Keywords: Error measures; Evaluating forecasts; Exponential smoothing; Safety stock; Time series analysis (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0169207014001824
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:intfor:v:31:y:2015:i:3:p:651-663

DOI: 10.1016/j.ijforecast.2014.10.006

Access Statistics for this article

International Journal of Forecasting is currently edited by R. J. Hyndman

More articles in International Journal of Forecasting from Elsevier
Bibliographic data for series maintained by Catherine Liu ().