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Note 2.5 Optimisation of (R,S) and (s,Q) Systems

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For optimisation of control parameters, the results obtained for the system can be easily transferred to an system by substituting for , for , and for (where is the lead time and the annual demand). The combination does not take into account the variability of demand and hence should not be applied in a probabilistic demand context.

Intermittent Demand Forecasting

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