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Results tagged with inventory
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user 4743
For questions about mathematical models and algorithms for optimizing inventories.
2
votes
1
answer
169
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Expected onhand inventory in (s,S) policy
When we are doing inventory optimization, say implementing a base-stock policy, one of the KPIs we monitor is the average on-hand inventory, which we use to calculate the average inventory holding cost … Recall a $(s,S)$-policy with review period $R$ operates as follows: every $R$-period, we review the current inventory position, which includes both the on-hand and in-transit inventory, if the inventory …
- 245
1
vote
3
answers
793
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Scaling of standard deviation for forecast error
I am doing inventory optimization for my firm and need to compute the safety stock for a couple of products. … But somehow, in planning the inventory policy it is more convenient to have the daily demand data, the way we do this is to use the monthly demand data and divide each of them by $30$ to have a daily demand …
- 245
5
votes
2
answers
796
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Safety Stock with Fill Rate Criterion
When applying the base stock inventory policy, assuming the daily demands are normally distributed with parameter $(\mu, \sigma)$, we can find the optimal parameter $S$ (the base stock level) in several …
- 245