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Abstract
We show that results indicating that the EOQ can be very sensitive to errors in the demand forecast are derived from a potentially inconsistent set of assumptions. Depending on the resolution of these inconsistencies, we show that the sensitivity of the EOQ to these forecast errors is generally negligible. Finally, we also provide evidence that when demand is modelled as a stochastic process, the EOQ is insensitive to the variance of the process.
Handled by the Editor-in-Chief.
Notes
Handled by the Editor-in-Chief.