Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Inventory control with a modified Croston procedure and Erlang distribution
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-1173-6713
2004 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 90, no 3, p. 361-367Article in journal (Refereed) Published
Abstract [en]

This paper considers an inventory control system, primarily for a finished goods inventory. The purpose is to create a procedure that can handle both fast-moving items with regular demand and slow-moving items. The suggested procedure should be easy to implement in a modern computerized ERP-system. Essentially, the system is a periodic review system built around a Croston forecasting procedure. An Erlang distribution is fitted to the observed data using the mean and variance of the forecasted demand rate. According to probabilities for stock shortages, derived from the probability distribution, the system decides if it is time to place a new order or not. The Croston forecasting method is theoretically more accurate than ordinary exponential smoothing for slow-moving items. However, it is not evident that a Croston forecasting procedure (with assumed Erlang distribution) outperforms ordinary exponential smoothing (with assumed normal distribution) applied in a “practical” inventory control system with varying demand, automatically generated replenishment, etc. Our simulation study shows that the system in focus will present fewer shortages at lower inventory levels than a system based on exponential smoothing and the normal distribution.

Place, publisher, year, edition, pages
2004. Vol. 90, no 3, p. 361-367
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Logistics
Identifiers
URN: urn:nbn:se:ltu:diva-12955DOI: 10.1016/S0925-5273(03)00053-7ISI: 000222538000006Scopus ID: 2-s2.0-2942642468Local ID: c1bd1750-7639-11db-962b-000ea68e967bOAI: oai:DiVA.org:ltu-12955DiVA, id: diva2:985906
Note
Validerad; 2004; 20061117 (ysko)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records

Levén, ErikSegerstedt, Anders

Search in DiVA

By author/editor
Levén, ErikSegerstedt, Anders
By organisation
Business Administration and Industrial Engineering
In the same journal
International Journal of Production Economics
Production Engineering, Human Work Science and Ergonomics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 190 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf