Estimating and Auditing Aggregate Inventory Levels at Multiple Stocking Points

Authors

Ronald H. Ballou

Document Type

Report

Publication Date

5-1-1980

Abstract

Relatively little attention has been given to methods for estimating and auditing distribution network inventories in the aggregate. This article shows a polynomial equation of the form I_T = Σ(w+mD_i+aD_i^b) which has theoretical verification is a good, basic tool for estimating overall inventory levels as well as providing insight into the effectiveness of inventory control policies at different stocking points. It also serves as a method for auditing and controlling current inventory policies on an on-going basis. Testing the model in a number of cases where "pull" distribution strategies were in effect revealed that good inventory policy could be represented by I_T = K)D_i^b where b ranges between 0.65 and 0.75.

Keywords

Operations research, Inventory control, Distribution (Economic theory), Mathematical models, Business logistics

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 478

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

Recommended Citation

Ballou, Ronald H., "Estimating and Auditing Aggregate Inventory Levels at Multiple Stocking Points" (1980). Research Reports from the Department of Operations. 187.
https://commons.case.edu/wsom-ops-reports/187