The Dynamic Behaviour of Linear Forecasting and Scheduling Rules

Abstract

In the first section of this paper, some important results of Ward⁴ concerning trendcorrected exponential smoothing models are developed and extended. In the second section a linear production and stock control scheme, in which exponential smoothing is used for forecasting, is examined. Some results analogous to Ward's are obtained for the combined system which throws some interesting light on the interaction between the forecasting and decision-making aspects of such a system.