Technical Note—A Note on the Near Optimality of “5-EOQ's Worth” Forecast Horizons

Leroy B. Schwarz
Additional contact information
Leroy B. Schwarz: University of Rochester, Rochester, New York

Operations Research, 1977, vol. 25, issue 3, 533-536

Abstract: This note contributes analytical insight into Lundin and Morton's empirical observation concerning the near optimality of “5-EOQ's worth” forecast horizons. They observed that, using protective procedures, forecast horizons corresponding to 5-EOQ's supply guarantee a first-period decision no more than one percent above optimum in an infinite horizon, periodic review, deterministic production planning problem. This note presents similar analytical results for the corresponding infinite horizon, continuous review, deterministic model.

Date: 1977
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/opre.25.3.533 (application/pdf)

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:inm:oropre:v:25:y:1977:i:3:p:533-536

Access Statistics for this article

More articles in Operations Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().