publication . Article . 1989

reducing inventory system costs by using robust demand estimators

Raymond A. Jacobs; Harvey M. Wagner;
Restricted
  • Published: 01 Jan 1989 Journal: Management Science, volume 35, pages 771-787 (issn: 0025-1909, eissn: 1526-5501, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
Applications of inventory theory typically use historical data to estimate demand distribution parameters. Imprecise knowledge of the demand distribution adds to the usual replenishment costs associated with stochastic demands. Only limited research has been directed at the problem of choosing cost effective statistical procedures for estimating these parameters. Available theoretical findings on estimating the demand parameters for (s, S) inventory replenishment policies are limited by their restrictive assumptions. The impact on total system cost of using the sample mean and standard deviation as compared to robust parameter estimators has not been tested. Thi...
Subjects
free text keywords: inventory/production, applications, parameter estimation, ordering policies, Management Science and Operations Research, Strategy and Management, Econometrics, Standard deviation, Inventory theory, Estimator, Economics, Inventory system, Exponential smoothing, Power approximation, Statistics, Absolute deviation, Estimation theory
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publication . Article . 1989

reducing inventory system costs by using robust demand estimators

Raymond A. Jacobs; Harvey M. Wagner;