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Inventory control with unknow demand distribution: a slow‐mover case
Author(s) -
Wessels J.
Publication year - 1972
Publication title -
statistica neerlandica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 39
eISSN - 1467-9574
pISSN - 0039-0402
DOI - 10.1111/j.1467-9574.1972.tb00193.x
Subject(s) - bayesian probability , feature (linguistics) , probability distribution , simple (philosophy) , distribution (mathematics) , mathematical optimization , inventory control , control (management) , mathematics , computer science , operations research , statistics , artificial intelligence , mathematical analysis , philosophy , linguistics , epistemology
Summary In this paper some tools will be developed for analysing a simple inventory problem of the slow‐mover type with the special feature that the probability distribution of the demand interarrival times is unknown. The role of sufficient statistics in decision making is analysed for an arbitrary optimality criterion and particularly for the Bayesian criterion. A computational approach for the case of a Bayesian criterion is presented together with some numerical results.