Forecasting and Inventory Control for Sporadic Demand under Periodic Review

Schultz, Carl R.

doi:10.2307/2582735

Cited by 19 publications

(22 citation statements)

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“…To the best of our knowledge, Schultz (1987Schultz ( , 1989, Katircioglu (1996), Moinzadeh (2001, Moinzadeh and Zhou (2008) and Axsäter and Viswanathan (2012) are the only authors who discuss this issue. Schultz (1987) considers (S-1,S) policies and assumes for tractability that the probability of the sum of two demands being less than S is negligible, which is quite restrictive. He shows that a constant delay in placing an order can result in significant holdingcost reductions with little additional risk or cost of stockouts.…”

Section: Research Backgroundmentioning

confidence: 99%

On the benefits of delayed ordering

Syntetos

Teunter

Babaï

et al. 2016

European Journal of Operational Research

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Practical experience and scientific research show that there is scope for improving the performance of inventory control systems by delaying a replenishment order that is otherwise triggered by generalised and all too often inappropriate assumptions. This paper presents the first analysis of the most commonly used continuous (s, S) policies with delayed ordering for inventory systems with compound demand. We analyse policies with a constant delay for all orders as well as more flexible policies where the delay depends on the order size. For both classes of policies and general demand processes, we derive optimality conditions for the corresponding delays. In a numerical study with Erlang distributed customer inter-arrival times, we compare the cost performance of the optimal policies with no delay, a constant delay and flexible delays. Sensitivity results provide insights into when the benefit of delaying orders is most pronounced, and when applying flexible delays is essential.

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Section: Research Backgroundmentioning

confidence: 99%

On the benefits of delayed ordering

Syntetos

Teunter

Babaï

et al. 2016

European Journal of Operational Research

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“…Schultz [1987]) concentrated on the decision rules associated with the control of inventory for SKUs with so-called lumpy demand. While forecasting methods based on Exponentially Weighted Moving Averages (EWMA) are efficient for the fast moving SKUs, it was apparent to management that some over-stocking was occurring for the slow moving products [Johnston et at., 1996].…”

Section: The Key Factors Leading To the Increasing Number Of Shelf Wamentioning

confidence: 99%

The Nuisance of Slow Moving Products in Electronic Commerce

Chodak¹

2016

PCBR

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Article presents the important problem of products with low turnover in environment of electronic commerce. The key factors leading to the increasing number of slow moving stock keeping units (SKUs) in the context of online store are described. These issues are divided into two sets: general (not connected with online environment) and these which concern mainly online stores. The difficulty with identification of such SKUs is presented and proposition of inventory control shelf warmers indicator is shown. Afterwards the three-stage procedure for dealing with the occurrence of shelf warmers is described. The last part of the paper present the short conclusions.

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“…Continuous distributions are very used for modelling the demand pattern (Dunsmuir and Snyder 1989), (Schultz 1987), (Yeh et al 1997) and normal distribution is especially frequent even for discrete demand. Although normal distributions may provide acceptable results even in the discrete demand case depending on its characteristics (average, variance, etc) it is more accurate modelling the discrete demand with a discrete distribution (Janssen et al 1996), (Strijbosch et al 2000), (Vereecke and Verstraeten 1994).…”

Section: Demand Distribution Selection and Validationmentioning

confidence: 99%

A non Parametric Estimation of Service Level in a Discrete Context

Cardós

Babiloni

Estellés

et al. 2014

Int. J. Prod. Manag. Eng.

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An exact method for the estimation of the cycle service level has been proposed for periodic review stock policies in a discrete demand context for any known i.i.d. demand distribution. However, the implementation of this method in real environments has previously to manage some important and eventually cumbersome issues such as: (i) the identification of the appropriate demand distribution and its validation; (ii) the estimation of the parameters of the demand distribution; and (iii) the calculation of temporal aggregates of the demand distribution in order to estimate the expected service level. This paper shows some difficulties linked to these issues and proposes an alternative approach based on the observed demand frequencies, so that these issues are avoided and the accuracy of the service level estimation seems to be improved.

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Forecasting and Inventory Control for Sporadic Demand under Periodic Review

Cited by 19 publications

References 0 publications

On the benefits of delayed ordering

On the benefits of delayed ordering

The Nuisance of Slow Moving Products in Electronic Commerce

A non Parametric Estimation of Service Level in a Discrete Context

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