IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v12y1984i6p575-581.html
   My bibliography  Save this article

A comparison of several approximations to the lead time demand distribution

Author

Listed:
  • Tadikamalla, Pandu R

Abstract

Several distributions have been used for approximating the lead time demand distribution in inventory systems. We compare five distributions, the normal, the logistic, the lognormal, the gamma and the Weibull for obtaining the expected number of back orders, the reorder levels to have a given protection and the optimal order quantity, reorder levels in continuous review models of (Q, r) type. The normal and the logistic distributions are inadequate to represent the situations where the coefficient of variation (the ratio of the standard deviation to the mean) of the lead time demand distribution is large. The lognormal, the gamma and the Weibull distributions are versatile and adequate; however the lognormal seems to be a viable candidate because of its computational simplicity.

Suggested Citation

  • Tadikamalla, Pandu R, 1984. "A comparison of several approximations to the lead time demand distribution," Omega, Elsevier, vol. 12(6), pages 575-581.
    • Handle: RePEc:eee:jomega:v:12:y:1984:i:6:p:575-581
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0305-0483(84)90060-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martí, Joana M. Comas & Tancrez, Jean-Sébastien & Seifert, Ralf W., 2015. "Carbon footprint and responsiveness trade-offs in supply chain network design," International Journal of Production Economics, Elsevier, vol. 166(C), pages 129-142.
    2. Anne E. Lordahl & James H. Bookbinder, 1994. "Order‐statistic calculation, costs, and service in an (s, Q) inventory system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(1), pages 81-97, February.
    3. Daniela Favaretto & Alessandro Marin & Marco Tolotti, 2023. "A theoretical validation of the DDMRP reorder policy," Computational Management Science, Springer, vol. 20(1), pages 1-28, December.
    4. Daniela Favaretto & Alessandro Marin & Marco Tolotti, 2021. "A data-driven and risk-based prudential approach to validate the DDMRP planning and control system," Working Papers 09, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    5. John E. Tyworth & Liam O'Neill, 1997. "Robustness of the normal approximation of lead‐time demand in a distribution setting," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(2), pages 165-186, March.
    6. A K Mishra & P R Tadikamalla, 2006. "Order splitting in single sourcing with scheduled-release orders," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(2), pages 177-189, February.
    7. John P. Saldanha & Bradley S. Price & Douglas J. Thomas, 2023. "A nonparametric approach for setting safety stock levels," Production and Operations Management, Production and Operations Management Society, vol. 32(4), pages 1150-1168, April.
    8. van der Duyn Schouten, F.A. & van Eijs, M.J.G. & Heuts, R.M.J., 1992. "The value of information in a fixed order quantity inventory system," Research Memorandum FEW 568, Tilburg University, School of Economics and Management.
    9. Vernimmen, Bert & Dullaert, Wout & Willemé, Peter & Witlox, Frank, 2008. "Using the inventory-theoretic framework to determine cost-minimizing supply strategies in a stochastic setting," International Journal of Production Economics, Elsevier, vol. 115(1), pages 248-259, September.
    10. Rossetti, Manuel D. & Yasin Ünlü, 2011. "Evaluating the robustness of lead time demand models," International Journal of Production Economics, Elsevier, vol. 134(1), pages 159-176, November.
    11. van der Duyn Schouten, F.A. & van Eijs, M.J.G. & Heuts, R.M.J., 1992. "The value of information in a fixed order quantity inventory system," Other publications TiSEM ded27036-a7f0-47c7-b799-c, Tilburg University, School of Economics and Management.
    12. Hon‐Shiang Lau & Amy Hing‐Ling Lau, 2003. "Nonrobustness of the normal approximation of lead‐time demand in a (Q, R) system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 50(2), pages 149-166, March.
    13. Halkos, George & Kevork, Ilias & Tziourtzioumis, Chris, 2014. "On the convexity of the cost function for the (Q,R) inventory model," MPRA Paper 55675, University Library of Munich, Germany.
    14. Mekhtiev, Mirza Arif, 2013. "Analytical evaluation of lead-time demand in polytree supply chains with uncertain demand, lead-time and inter-demand time," International Journal of Production Economics, Elsevier, vol. 145(1), pages 304-317.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:12:y:1984:i:6:p:575-581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.