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Estimating the cumulative distribution function of lead-time demand using bootstrapping with and without replacement

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  • Boylan, John E.
  • Babai, M. Zied

Abstract

Forecasting of the cumulative distribution function (CDF) of demand over lead time is a standard requirement for effective inventory replenishment. In practice, while the demand for some items conforms to standard probability distributions, the demand for others does not, thus making it challenging to estimate the CDF of lead-time demand. Distribution-free methods have been proposed, including resampling of demand from previous individual periods of the demand history, often referred to as bootstrapping in the inventory forecasting literature. There has been a lack of theoretical research on this form of resampling.

Suggested Citation

  • Boylan, John E. & Babai, M. Zied, 2022. "Estimating the cumulative distribution function of lead-time demand using bootstrapping with and without replacement," International Journal of Production Economics, Elsevier, vol. 252(C).
    • Handle: RePEc:eee:proeco:v:252:y:2022:i:c:s0925527322001736
    DOI: 10.1016/j.ijpe.2022.108586
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    References listed on IDEAS

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