Table 1
Parameter Settings for Experiments
Shown in Figures 4 and 5
Demand Forecast = 10,000/month for all eight skus
Forecast Error CV = .1, .2, .3
Lead-time = 3 months.
Monthly order shipments (and review).
All shortages backordered – no lost sales.
Average inventory target = 2.4, 2.6, 2.8 weeks
of supply.