Abstract
In this paper, some periodic reordering inventory system, which includes moving average (M. A. ) demand model and particular calculation method of order quantity using M. A. parameters, is discussed and the optimal ordering policy for such systam, which minimizes the ratio of term-end inventory variance to demand variance, is derived. It also discussed in relation to Vassian's classical ordering rule and clarifies that our policy is equivalent to Vassian's rule by supposing some demand forecasting method, which is functionally equivalent to our time series analytical method.
