An Analysis of Variances of the Ordering Quantities and the Inventory Levels in Multi-Stage Production System Influenced by Forecasting Error and Down Time

Abstract

This paper considers the effect of forecasting error and down time due to the system failure on variances of the ordering quantities and inventory levels in the Push type ordering system without the sensor and feedback of the information.The result will show the basis of the sensor and feedback of the production ordering method to control variances of the ordering quantities and inventory levels.