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On the interaction between forecasting and stock control: the case of non-stationary demand

Research output: Contribution to Journal/MagazineJournal articlepeer-review

  • Leo W.g. Strijbosch
  • Aris A. Syntetos
  • John Boylan
  • Elleke Janssen
<mark>Journal publication date</mark>1/09/2011
<mark>Journal</mark>International Journal of Production Economics
Issue number1
Number of pages11
Pages (from-to)470-480
Publication StatusPublished
<mark>Original language</mark>English


The effect of using estimated (forecast) demand parameters on the performance of an inventory control system is an intriguing and important subject. Recent research has been undertaken on this phenomenon assuming stationary demand data. In this paper we extend the research to non-stationary demands, by means of simulation. The case of a periodic order-up-to-level inventory system is considered and the experimental structure allows us to evaluate in a progressive manner the accumulated effect of using the optimal forecasting method, optimal forecast parameters and correct variance expression procedures. The results allow insights to be gained into operational issues and demonstrate the scope for improving stock control systems.