Accession Number:

ADA034413

Title:

Inventory Control Using Statistical Estimates: The Power Approximation and Sporadic Demands (Variance/Mean = 9).

Descriptive Note:

Technical rept.,

Corporate Author:

YALE UNIV NEW HAVEN CONN SCHOOL OF ORGANIZATION AND MANAGEMENT

Personal Author(s):

Report Date:

1976-11-01

Pagination or Media Count:

60.0

Abstract:

This study examines the effectiveness of the Power Approximation when there is a considerable probability of zero demand in any period. These sporadic demand sequences are modeled as compound negative binomial distributions, which are specified by a probability q that demand is zero and probability 1-q that demand is negative binomial. In particular, the simulation study that forms the basis of this investigation uses a compound negative binomial distribution with q0.25 and a negative binomial distribution fitted so that the overall variance-to mean ratio is 9.

Subject Categories:

  • Statistics and Probability

Distribution Statement:

APPROVED FOR PUBLIC RELEASE