@conference{Boute2007, author = {R.N. Boute and S.M. Disney and M.R. Lambrecht and B. Van Houdt}, title = {The impact of correlation in demand on lead times and safety stocks}, booktitle = {Manufacturing and Service Operations Management Conference}, year = {2007}, pages = {6 pages}, address = {Beijing, China}, month = {18th-19th June}, url = {https://www.researchgate.net/publication/395690638_The_impact_of_correlation_in_demand_on_lead_times_and_safety_stocks}, abstract = {This paper analyses a two-echelon supply chain. The retailer satisfies a first-order autoregressive customer demand and replenishes according to an adaptive order-up-to inventory policy. Due to the correlation in demand, the bullwhip effect may arise, which implies that the replenishment orders have a greater variability than the observed consumer demand. In this paper, we focus on its impact on the manufacturer's production. Much of the management science literature separates the questions of production and inventory control. However, inventory influences production by initiating orders, and production influences inventory by completing and delivering orders to inventory. Modelling a two-echelon supply chain (retailer-manufacturer) as a production/inventory system complies with this research question and explicitly analyses the interaction between the retailer's inventory and the manufacturer's production management.} }