Preface xv 1 INTRODUCTION 1.1 Importance and objectives of inventory control 1.2 Overview and purpose of the book 1.3 Framework References 2 FORECASTING 2.1 Objectives and approaches 2.2 Demand models 2.2.1 Constant model 2.2.2 Trend model 2.2.3Trend-seasonal model 2.2.4 Choosing demand model 2.3 Moving average 2.4 Exponential smoothing 2.4.1 Updating procedure 2.4.2 Comparing exponential smoothly to moving average 2.4.3 Practical considerations and an example 2.5 Exponential smoothing with trend 2.5.1 Updating procedure 2.5.2 Practical considerations and an example 2.6 Winters’ trend-seasonal method 2.6.7 Updating procedure 2.6.2 Practical considerations and an example 2.7 Using regression analysis 2.7.1 Forecasting demand for a trend model 2.7.2 Practical considerations and an example 2.7.3 Forecasts based on other factors 2.7.4 More general regression models 2.8 Sporadic demand 2.9 Box-Jenkins techniques 2.10 Forecast errors 2.10.1 Common error measures 2.10.2 Updating MAD or o2 2.10.3 Determining the standard deviation as a function of demand 2.10.4 Forecast errors for other time periods 2.10.5 Sales data instead of demand data 2.11 Monitoring forecasts 2.11.1 Checking demand 2.11.2 Checking that the forecast represents the mean 2.12 Manual forecasts References Problems 3 COSTS AND CONCEPTS 3.1 Considered costs and other assumptions 3.1.1 Holding costs 3.1.2 Ordering or setup costs 3.1.3 Shortage costs or service constraints 3.1.4 0ther costs and assumptions 3.2 Different ordering systems 3.2.1 Inventory position 3.2.2 Continuous or periodic review 3.2.3 Different ordering policies 3.2.3.1 (R,Q)policy 3.2.3.2 (s,S)policy References 4 SINGLE ECHELON SYSTEMS DETERMINISTlC LOT SIZING 4.1 The classical economic order quantity model 4.1.1 Optimal order quantity 4.1.2 Sensitivity analysis 4.1.3 Reorder point 4.2 Finite production rate 4.3 Quantity discounts 4.4 Backorders allowed 4.5 Time--varying demand 4.6 The Wagner-Whitin algorithm …… 5 SINGLE-ECHELON SYSTEMS:REORDER POINTS 6 SINGLE-ECHELON SYSTEMS:INTEGRATION-OPTIMALITY 7 COORDINATED ORDERING 8 MULTI-ECHELON SYSTEMS:STRCTURES AND ORDERING POLICIES 9 MULTI-ECHELON SYSTEMS:LOT SIZING 10 MULTI-ECHELON SYSTEMS:REORDER POINTS 11 IMPLEMENTATION APPENDIX ANSWRS AND HINTS TO PROBLEMS APPENDIX NORMAL DISTRIBUTION TABLES INDEX