COMPARISON OF BOOTSTRAP SIMULATION AND TRADITIONAL APPROACH TO SAFETY STOCK CALCULATION

摘要

The bootstrap approach developed by Snyder R. D., Koehler A. B., and Ord, J. K. in[12] is compared to the traditional approach where analytical formulas are used to derive thedistribution of the total lead-time demand in calculating safety stocks. The demand data usedin the experiment is obtain from a global manufacturer of specialty chemicals. Theexperimental design involved simple exponential smoothing, additive trend, and dampedadditive trend forecasting methods and various levels of safety stock.