Inventory models need information about the demand distribution. In practice, this information is not known with certainty and has to be estimated with often relatively few historical demand observations. Using these estimates leads to underperformance. This paper focuses on gamma distributed...

Inventory models need some specification of the distribution of demand in order to find the optimal order-up-to level or reorder point.This distribution is unknown in real life and there are several solutions to overcome this problem.One approach is to assume a distribution, estimate its...