Article ID: | iaor20032282 |
Country: | United States |
Volume: | 47 |
Issue: | 9 |
Start Page Number: | 1268 |
End Page Number: | 1281 |
Publication Date: | Sep 2001 |
Journal: | Management Science |
Authors: | Wein Lawrence M., Toktay L. Beril |
Keywords: | inventory, forecasting: applications, queues: applications |
We consider a production stage that produces a single item in a make-to-stock manner. Demand for finished goods is stationary. In each time period, an updated vector of demand forecasts over the forecast horizon becomes available for use in production decisions. We model the sequence of forecast update vectors using the Martingale model of forecast evolution developed by Graves