Article ID: | iaor20061897 |
Country: | United Kingdom |
Volume: | 44 |
Issue: | 7 |
Start Page Number: | 1313 |
End Page Number: | 1330 |
Publication Date: | Jan 2006 |
Journal: | International Journal of Production Research |
Authors: | Hayya J.C., Kim J.G., Harrison T.P., Disney Stephen M., Chatfield D. |
Keywords: | forecasting: applications |
Differences in estimation or forecasting procedures could produce dramatically different parameter estimates in supply chain inventory management. We show, for example, that determining when to introduce estimates of lead times in the calculation of the variance of demand during lead time can yield dramatically different safety stocks and order-up-to levels. Also, calculations of supply chain variance amplification using a firewalled, sequential chain execution differ markedly from an analysis that considers a