DocumentCode :
2567481
Title :
Challenges in modeling demand for inventory optimization of slow-moving items
Author :
Grange, Frank
Author_Institution :
Andersen Consulting LLP, Denver, CO, USA
Volume :
2
fYear :
1998
fDate :
13-16 Dec 1998
Firstpage :
1211
Abstract :
This paper presents the concept of inventory optimization and the role of demand distributions. Slow-moving item demand receives special emphasis. Simulations of several popular discrete distributions illustrate the difficulties of probability modeling with the quantity and quality of demand history typically available. Results of experiments with a state-of-the-art probability modeling tool (EXpertFit TM) highlight the practical difficulties of data-fitting. Finally, inventory optimization over a simulated data set with the “wrong” assumed demand distribution suggests a business case for accurately identifying demand distributions
Keywords :
digital simulation; stock control data processing; EXpertFit; data-fitting; demand distributions; discrete distributions; inventory optimization; probability modeling; slow-moving item demand; Automobiles; Communication industry; Constraint optimization; Financial management; Fitting; History; Inventory management; Investments; Probability distribution; Telecommunication control;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Simulation Conference Proceedings, 1998. Winter
Conference_Location :
Washington, DC
Print_ISBN :
0-7803-5133-9
Type :
conf
DOI :
10.1109/WSC.1998.745981
Filename :
745981
Link To Document :
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