An optimal, potentially automatable ordering policy

Ramps in demand occur frequently in practice causing supply chain problems. We exactly solve the inventory and ordering equations reacting to a ramp. The ordering policy for the critically stable solution continuously returns the inventory to its desired level eliminating deficits and excesses. The policy is independent of the demand slope and so a single, easy to calculate policy may be effective for all ramps. Even in the presence of noise in the demand, this policy maintains the inventory close to the desired level. While the theory is complex, the ordering policy is simple and could be of significant practical value.