Structural time series models in inventory control

Andrew Harvey, Ralph D. Snyder

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)

Abstract

Exponential smoothing methods are often used to forecast demand in computerized inventory control systems. These methods, by themselves, are rather ad hoc, but they can be given a proper statistical foundation by setting up a class of structural time series models. The purpose of the paper is to highlight the potential role of these models in inventory control. In particular they are used as the basis for deriving formulae for estimating the mean and variance of the lead time demand distribution under both constant and stochastic lead time assumptions.

Original languageEnglish
Pages (from-to)187-198
Number of pages12
JournalInternational Journal of Forecasting
Volume6
Issue number2
DOIs
Publication statusPublished - 1 Jan 1990

Keywords

  • Exponential smoothing
  • Forecasting
  • Inventory control
  • Kalman filtering
  • Lead times

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