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Logistics Journal, Vol. 2009, Iss. Juli - Inventory policies provide instructions on how to calculate stock levels and order quantities. This paper examines the effect of the demand distribution on the performance of several well-known policies. Their performance is compared in terms of achieved service levels. As a conclusion from these comparisons, a nonparametric demand model is proposed to be used in inventory policies.

The effect of demand distributions on the performance of inventory policies