The value of combining forecasts in inventory management - a case study in banking

Article Abstract:

Utilization of combined forecasts leads to improvement in inventory management. A case study of a leading bank in Hong Kong reveals that use of combined forecasts reduce forecasting errors for the bank's printed forms. Such reduction enables the bank to save the inventory holding cost since the safety or buffer stock is found to be directly proportional to forecasting errors. The study also reveals that dramatic reduction in the sum of root mean squared errors is achieved with the use of a common set of weights.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Analysis, Banks (Finance), Forecasting, Quadratic programming

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Materials coordination in stochastic multi-echelon systems

Article Abstract:

Stochastic multi-echelon inventory systems are considered. Specifically, the numerical tractability and applicability of multi-echelon models to the problem of controlling materials flow in large uncapacitated production/distribution networks is examined. The analysis, which also includes capacitated and flexible manufacturing systems, demonstrates the optimality of base stock control policies with respect to the average cost measure.

Materials & Handling Management, Operations research, Management science, Case studies, Materials handling, Materials management

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Multi-item spare parts systems with lateral transshipments and waiting time constraints

Article Abstract:

A model of inventory control of spare parts is developed for cost minimization of inventories and shipments. Solution for cost minimization problem is derived using Lagrangian relaxation method.

Europe, Management dynamics, Regulation and Administration of Transportation Programs, Water Transportation Programs, Models, Usage, Shipping industry, Marine transportation, Company business management, Lagrangian functions, Cost control, Cost reduction

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