We examine the placement of safety stocks in a supply chain for which we have an evolving demand forecast. Under assumptions about the forecasts, the demand process, and the supply chain structure, we show that safety-stock placement for such systems is effectively equivalent to the...

A central question in supply chain management is how to coordinate activities and inventories over a large number of stages and locations, while providing a high level of service to end customers. One theoretically and practically important methodology for addressing this problem is the...