Forecast Horizons for Production Planning with Stochastic Demand
نویسندگان
چکیده
Forecast horizons, i.e long enough planning horizons that ensure agreement of first period optimal production decisions of finite and infinite horizon problems regardless of changes in future demand, are shown to exist in the context of production planning under stochastic demand. The monotonicity of first period optimal production decisions with respect to first order stochastic shifts in demand is the key to the results. Finally, a stopping rule that is ensured to detect the minimal forecast horizon is presented.
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