Lead Time demand for Simple Exponential Smoothing
A new simple formula is found to correct the underestimation of the standard deviation for total lead time demand when using simple exponential smoothing. This new formula allows one to see readily the significant size of the underestimation of the traditional formula and can easily be implemented in practice. The formula is derived by using a state space model for simple exponential smoothing.
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|Date of creation:||1998|
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