Technical Note—A Note on the Near Optimality of “5-EOQ's Worth” Forecast Horizons
- 1 June 1977
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 25 (3) , 533-536
- https://doi.org/10.1287/opre.25.3.533
Abstract
This note contributes analytical insight into Lundin and Morton's empirical observation concerning the near optimality of “5-EOQ's worth” forecast horizons. They observed that, using protective procedures, forecast horizons corresponding to 5-EOQ's supply guarantee a first-period decision no more than one percent above optimum in an infinite horizon, periodic review, deterministic production planning problem. This note presents similar analytical results for the corresponding infinite horizon, continuous review, deterministic model.Keywords
This publication has 0 references indexed in Scilit: