| Article ID: | iaor1990386 |
| Country: | United States |
| Volume: | 36 |
| Issue: | 4 |
| Start Page Number: | 1 |
| End Page Number: | 7 |
| Publication Date: | Apr 1990 |
| Journal: | Management Science |
| Authors: | Gardner Everette S. |
This paper analyzes the impact of forecasting on inventory decisions in a large physical distribution system. Alternative forecasting models are evaluated by developing tradeoff curves between inventory investment and customer service. The results demonstrate that the choice of forecasting model is an important factor in determining the amount of investment needed to support any target level of customer service.