Previous work dealt with the problems of nervousness in Material Requirements Planning (MRP) Systems when production schedules were modified to include setups which previously had not been scheduled. In this work we further examine nervousness and its cost. By modifying the setup costs used in...

Although it is often the case that the parameters of the distribution of demand are not known with certainty and that a Bayesian formulation would be appropriate, such an approach is generally not used in inventory calculations for computational reasons. Since one often resorts to a non-Bayesian...