A Time-Series Framework for Supply-Chain Inventory Management

Topics:
Inventory Management
Tags:
Enterprise Software,
Member,
Software,
St. Louis,
Supply Chain,
Supply Chain Management (SCM)
Source:
Washington University in St. Louis

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Overview: This report considers a supply chain in which the underlying demand process can be described in a linear state space form. Inventory is managed at various points of the chain (members), based on local information that each member observes and continuously updates. The key feature of the model is that it takes into account the ability of the members to observe subsets of the underlying state vector, and adopt their forecasting and replenishment policies accordingly. This enables us to model situations in which the members are privy to certain explanatory variables of the demand, with the latter possibly evolving according to a vector autoregressive time series.

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Format: PDF | Size: 32KB | Date: May 2002 | Pages: 1

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