Statistical Estimation Problems in Inventory Control
In this paper we define and illustrate the use of the concept of "Expected Total Operating Cost" (ETOC) in dealing with inventory policy estimation when the cost structure is piecewise linear. We show, through examples, that estimates based on classical procedures are often unsatisfactory when viewed in terms of ETOC, and derive improved estimates. Then we look at the problem from a Bayesian point of view and derive the prior distributions (within a particular class) that are implied by the adoption of these superior procedures.
Volume (Year): 15 (1969)
Issue (Month): 11 (July)
|Contact details of provider:|| Postal: |
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:15:y:1969:i:11:p:686-701. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If references are entirely missing, you can add them using this form.