Modified Normal Demand Distributions in (R,S)-Inventory Models

To model demand, the normal distribution is by far the most popular; the disadvantage that it takes negative values is taken for granted.This paper proposes two modi.cations of the normal distribution, both taking non-negative values only.Safety factors and order-up-to-levels for the familiar (R, S)-control system are derived and compared with the standard values corresponding with the original normal distribution.

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Year of publication:	2003
Authors:	Strijbosch, L.W.G. ; Moors, J.J.A.
Institutions:	Tilburg University, Center for Economic Research
Subject:	demand \| inventory control

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Extent:	application/pdf
Series:	Discussion Paper.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series CentER Discussion Paper Number 2003-76
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011090825