Dynamic inventory targets revisited

J A Buzacott
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J A Buzacott: Schulich School of Business, York University

Journal of the Operational Research Society, 1999, vol. 50, issue 7, 697-703

Abstract: Abstract This paper is about periodic review inventory systems which are controlled by replenishing the inventory up to a target level which is set based on a demand forecast generated from past demands. It is shown that the replenishments will fluctuate more than final demand. Furthermore the effectiveness of a given safety stock is significantly reduced, indeed even with a very high target the maximum achievable service level can be quite limited. The paper is based on an actual spare parts inventory control system used in a domestic appliance company.

Keywords: inventory; forecasting; system dynamics (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1057/palgrave.jors.2600744

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