On the equivalence of the proportional and damped trend order-up-to policies: An eigenvalue analysis


Our contribution is to show the equivalence of the order-up-to replenishment policy with damped trend forecasting (OUT-DT) to the proportional OUT (POUT) policy via an eigenvalue (zero-pole) analysis. We also investigate whether the OUT-DT policy has an always increasing in the lead time Bullwhip effect using the eigenvalues ordering approach of Gaalman, Disney and Wang (2018).

Pre-prints of the 22nd International Working Seminar on Production Economics, 21st-25th February, Innsbruck, AUSTRIA (On-line)