On the calculation of safety stocks when demand is forecasted¶
Prak, D., Teunter, R., & Syntetos, A. (2017). On the calculation of safety stocks when demand is forecasted. European Journal of Operational Research, 256(2), 454-461.
Cited by¶
1 citation across 1 artifact.
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Mechanisms¶
- Forecast Range
- The range also changes how the number is used downstream: inventory is planned against the band's width, not a point, so the buffer for the wide far-out months is deliberate rather than an accident of a single guess.
This sourceUses lead-time forecast-error variance, rather than a point forecast alone, to size inventory safety stock.
- The range also changes how the number is used downstream: inventory is planned against the band's width, not a point, so the buffer for the wide far-out months is deliberate rather than an accident of a single guess.
Verification¶
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Registry ID ref:6a4f8b365ae1 · see in the full table