Title

An Empirical Evaluation Of Inventory Planning Frequencies Based On Cost And Production Stability

Keywords

Bullwhip effect; Production and inventory control; Production stability; Supply chain management

Abstract

We present an approach for evaluating production and inventory planning frequencies in order to find an appropriate trade-off between minimizing cost and minimizing production variability. We use simulation to evaluate the performance of several planning frequencies under various levels of forecast error and demand variability. We use actual demand data for several products produced by a large semiconductor manufacturer in a case study application. Results indicate more frequent planning is beneficial in the presence of highly variable demand. The appropriate control frequency is ultimately determined by the organization's prioritization of cost minimization and production stability.

Publication Date

12-1-2006

Publication Title

2006 IIE Annual Conference and Exhibition

Number of Pages

-

Document Type

Article; Proceedings Paper

Personal Identifier

scopus

Socpus ID

36448977280 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/36448977280

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