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Forecasting for Inventory Planning under Correlated Demand

  1. Melike Baykal-Gürsoy1,
  2. Nesim K. Erkip2

Published Online: 14 JAN 2011

DOI: 10.1002/9780470400531.eorms0330

Wiley Encyclopedia of Operations Research and Management Science

Wiley Encyclopedia of Operations Research and Management Science

How to Cite

Baykal-Gürsoy, M. and Erkip, N. K. 2011. Forecasting for Inventory Planning under Correlated Demand. Wiley Encyclopedia of Operations Research and Management Science. .

Author Information

  1. 1

    RUTCOR, CAIT, Rutgers University, Department of Industrial and Systems Engineering, New Brunswick, New Jersey

  2. 2

    Bilkent University, Department of Industrial Engineering, Bilkent, Ankara, Turkey

Publication History

  1. Published Online: 14 JAN 2011

Abstract

In this article, we review inventory planning approaches in order to find out demand-forecasting requirements. We consider single- and multi-item supply chains under stationary and nonstationary, correlated demand. We also examine Martingale model of forecast evolution (MMFE), which is a way for modeling forecasts. We then summarize forecasting procedures that will be helpful in realizing the aforementioned inventory models.

Keywords:

  • multi-item systems;
  • multiechelon systems;
  • forecast evolution;
  • Martingale model of forecast evolution (MMFE)