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Modified normal demand distributions in (R,S)-inventory models

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Author Info
Strijbosch, L.W.G.
Moors, J.J.A. (Tilburg University, Center for Economic Research)

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Abstract

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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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 76.

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Date of creation: 2003
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Handle: RePEc:dgr:kubcen:200376

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  1. Moors, J.J.A. & Strijbosch, L.W.G., 2001. "Exact fill rates for (R, s, S) inventory control with gamma distributed demand," Discussion Paper 32, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Strijbosch, L.W.G. & Moors, J.J.A., 1999. "Inventory control : the impact of unknown demand distribution," Research Memorandum 770, Tilburg University, Faculty of Economics and Business Administration. [Downloadable!]
  3. Chen, M. S. & Chuang, C. C., 2000. "An extended newsboy problem with shortage-level constraints," International Journal of Production Economics, Elsevier, vol. 67(3), pages 269-277, October. [Downloadable!] (restricted)
  4. Bartezzaghi, Emilio & Verganti, Roberto & Zotteri, Giulio, 1999. "Measuring the impact of asymmetric demand distributions on inventories," International Journal of Production Economics, Elsevier, vol. 60(1), pages 395-404, April. [Downloadable!] (restricted)
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