Distributional Analysis of Inventory Demand over Leadtime.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The distribution of inventory demand over procurement leadtime is modeled using mixed probability distributions that explicitly account for the high incidence of zero demands observed in Inventory Control Point Demand History Files. Analysis was limited to the right-hand tail area of the distribution on the assumption that that area is of critical importance in determining the effectiveness of an inventory system. Probabilistic models studied were 1 Bernoulli-exponential, 2 Bernoulli-lognormal, and 3 Bernoulli-logistic. These compound distributions were compared to several standard distributions including the Poisson, negative binomial and normal distributions using a resampling procedure appropriate in cases such as this where a paucity of data exists. Fits obtained from the 75th to 95th percentiles indicated the mixed distributions may be superior as a class to the standard distributions for high-demand items. Author
- Administration and Management
- Statistics and Probability
- Logistics, Military Facilities and Supplies