Model Extensions: Forecast Errors and Enhanced Consumption Planning
In the previous chapter, a basic formal model of the DMC problem has been introduced and different allocation schemes for multi-stage customer hierarchies have been analyzed. More precisely, a partitioned allocation has been performed, assuming that a matching dedicated consumption rule is used which does not overrule the original allocations. It is the purpose of this chapter to present two key model extensions. First, the impact of introducing forecast errors on the partitioned allocation will be investigated.
KeywordsLeaf Node Forecast Error Allocation Scheme Parent Level Safety Stock
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