Experience with a Successful System for Forecasting and Inventory Control

Jack L. Bishop
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Jack L. Bishop: Ten Kingsbury Place, St. Louis, Missouri

Operations Research, 1974, vol. 22, issue 6, 1224-1231

Abstract: The wealth of management-science literature dealing with optimal solutions to the inventory-control problem would be more impressive if there were not a dearth of evidence of successful applications of these tools. As a step into this gap, this paper describes experiences with an evolutionary approach to a system for the centralized control of inventories of finished products in several branch warehouses; it embodies forecasting and inventory ordering, and is characterized by a man-computer partnership. Both manual overrides of the computer-generated order parameters and exception reporting a Low significant cost savings with no degradation of service. A very simple inventory-control doctrine allowed the operating personnel to gain confidence in the system—and management science in general. Based on this confidence, a simple simulation model was developed to permit evaluating alternative simple algorithms.

Date: 1974
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Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:22:y:1974:i:6:p:1224-1231

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