When is it feasible to model low discrete demand by a normal distribution?

OR Spectrum

Volumn 35, Issue 1, 2013, Pages 153-162

  Axsäter, Sven ^a  

^a LUND UNIVERSITY   (Sweden)

Author keywords

Inventory management; Low demand; Normal approximation; Stochastic

Indexed keywords

EID: 84871948578     PISSN: 01716468     EISSN: 14366304     Source Type: Journal    
DOI: 10.1007/s00291-011-0278-8     Document Type: Article

References (10)

1. Axsäter S (2006) Inventory control. 2nd edn. Springer, New York.
2. Burgin TA (1975) The gamma distribution and inventory control. Oper Res Quart 26: 507-525.
3. Feller W (1968) An introduction to probability theory and its applications, vol 1, 3rd edn. Wiley, New York.
4. Fortuin L (1980) Five popular probability density functions: a comparison in the field of stock control models. J Oper Res Soc 31: 937-942.
5. Kottas JF, Lau H-S (1980) The use of versatile distribution families in some stochastic inventory calculations. J Oper Res Soc 31: 393-403.
6. Lau H-S, Zaki A (1982) The sensitivity of inventory decisions to the shape of lead time demand distribution. IIE Trans 13: 265-271.
7. Lau H-S, Lau AH-L (2003) Nonrobustness of the normal approximation of lead-time demand in a (Q, R) system. Nav Res Logist 50: 149-166.
8. Silver EA, Pyke DF, Peterson R (1998) Inventory management and production planning and scheduling. 3rd edn. Wiley, New York.
9. Tyworth JE, O'Neill L (1997) Robustness of the normal approximation of lead-time demand in a distribution setting. Nav Res Logist 44: 165-186.
10. Zipkin PH (2000) Foundations of inventory management. McGraw-Hill, Singapore.