IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v61y2010i6d10.1057_jors.2009.49.html
   My bibliography  Save this article

Correlation when data are missing

Author

Listed:
  • M Parzen

    (Emory University)

  • S Lipsitz

    (Harvard Medical School)

  • R Metters

    (Emory University)

  • G Fitzmaurice

    (Harvard Medical School)

Abstract

Variable correlation is important for many operations research models. Many inventory, revenue management, and queuing models presume uncorrelated demand between products, market segments, or time periods. The specific model applied, or the resulting policies of a model, can differ drastically depending on variable correlation. Having missing data are a common problem for the real world application of operations research models. This work is at the junction of the two topics of correlation and missing data. We propose a test of independence between two variables when data are missing. The typical method for determining correlation with missing data ignores all data pairs in which one point is missing. The test presented here incorporates all data. The test can be applied when both variables are continuous, when both are discrete, or when one variable is discrete and the other is continuous. The test makes no assumptions about the distribution of the two variables, and thus it can be used to extend application of non-parametric rank tests, such as Spearman's rank correlation, to the case where data are missing. An example is shown where failure to incorporate the incomplete data yields incorrect policies.

Suggested Citation

  • M Parzen & S Lipsitz & R Metters & G Fitzmaurice, 2010. "Correlation when data are missing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(6), pages 1049-1056, June.
    • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:6:d:10.1057_jors.2009.49
    DOI: 10.1057/jors.2009.49
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jors.2009.49
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/jors.2009.49?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Ernst, Ricardo & Kamrad, Bardia, 2006. "Estimating demand by using sales information: inaccuracies encountered," European Journal of Operational Research, Elsevier, vol. 174(2), pages 675-688, October.
    2. A. Federgruen & P. Zipkin, 1986. "An Inventory Model with Limited Production Capacity and Uncertain Demands II. The Discounted-Cost Criterion," Mathematics of Operations Research, INFORMS, vol. 11(2), pages 208-215, May.
    3. Gary D. Eppen, 1979. "Note--Effects of Centralization on Expected Costs in a Multi-Location Newsboy Problem," Management Science, INFORMS, vol. 25(5), pages 498-501, May.
    4. Arreola-Risa, Antonio, 1996. "Integrated multi-item production-inventory systems," European Journal of Operational Research, Elsevier, vol. 89(2), pages 326-340, March.
    5. F McLeod, 2007. "Estimating bus passenger waiting times from incomplete bus arrivals data," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(11), pages 1518-1525, November.
    6. Olinsky, Alan & Chen, Shaw & Harlow, Lisa, 2003. "The comparative efficacy of imputation methods for missing data in structural equation modeling," European Journal of Operational Research, Elsevier, vol. 151(1), pages 53-79, November.
    7. A. Federgruen & P. Zipkin, 1986. "An Inventory Model with Limited Production Capacity and Uncertain Demands I. The Average-Cost Criterion," Mathematics of Operations Research, INFORMS, vol. 11(2), pages 193-207, May.
    8. Manoj Lohatepanont & Cynthia Barnhart, 2004. "Airline Schedule Planning: Integrated Models and Algorithms for Schedule Design and Fleet Assignment," Transportation Science, INFORMS, vol. 38(1), pages 19-32, February.
    9. Y Kim & S Y Sohn, 2007. "Technology scoring model considering rejected applicants and effect of reject inference," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(10), pages 1341-1347, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitris Bertsimas & Ioannis Ch. Paschalidis, 2001. "Probabilistic Service Level Guarantees in Make-to-Stock Manufacturing Systems," Operations Research, INFORMS, vol. 49(1), pages 119-133, February.
    2. Woonghee Tim Huh & Ganesh Janakiraman & Mahesh Nagarajan, 2016. "Capacitated Multiechelon Inventory Systems: Policies and Bounds," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 570-584, October.
    3. Sari, Kazim, 2010. "Exploring the impacts of radio frequency identification (RFID) technology on supply chain performance," European Journal of Operational Research, Elsevier, vol. 207(1), pages 174-183, November.
    4. James A. Rappold & John A. Muckstadt, 2000. "A computationally efficient approach for determining inventory levels in a capacitated multiechelon production‐distribution system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 47(5), pages 377-398, August.
    5. Y. Boulaksil & J. C. Fransoo & T. Tan, 2017. "Capacity reservation and utilization for a manufacturer with uncertain capacity and demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(3), pages 689-709, July.
    6. Refik Güllü, 1996. "On the value of information in dynamic production/inventory problems under forecast evolution," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(2), pages 289-303, March.
    7. Gullu, Refik, 1998. "Base stock policies for production/inventory problems with uncertain capacity levels," European Journal of Operational Research, Elsevier, vol. 105(1), pages 43-51, February.
    8. Awi Federgruen & Min Wang, 2015. "Inventory Models with Shelf-Age and Delay-Dependent Inventory Costs," Operations Research, INFORMS, vol. 63(3), pages 701-715, June.
    9. Paul Zipkin, 2008. "On the Structure of Lost-Sales Inventory Models," Operations Research, INFORMS, vol. 56(4), pages 937-944, August.
    10. Lee, Jun-Yeon & Schwarz, Leroy B., 2009. "Leadtime management in a periodic-review inventory system: A state-dependent base-stock policy," European Journal of Operational Research, Elsevier, vol. 199(1), pages 122-129, November.
    11. Ioannis Ch. Paschalidis & Yong Liu, 2003. "Large Deviations-Based Asymptotics for Inventory Control in Supply Chains," Operations Research, INFORMS, vol. 51(3), pages 437-460, June.
    12. Berling, Peter & Eng-Larsson, Fredrik, 2017. "Environmental implications of transport contract choice - capacity investment and pricing under volume and capacity contracts," European Journal of Operational Research, Elsevier, vol. 261(1), pages 129-142.
    13. Xiuli Chao & Xiting Gong & Cong Shi & Chaolin Yang & Huanan Zhang & Sean X. Zhou, 2018. "Approximation Algorithms for Capacitated Perishable Inventory Systems with Positive Lead Times," Management Science, INFORMS, vol. 64(11), pages 5038-5061, November.
    14. van Houtum, G. J. & Inderfurth, K. & Zijm, W. H. M., 1996. "Materials coordination in stochastic multi-echelon systems," European Journal of Operational Research, Elsevier, vol. 95(1), pages 1-23, November.
    15. Jian Yang & Zhaoqiong Qin, 2007. "Capacitated Production Control with Virtual Lateral Transshipments," Operations Research, INFORMS, vol. 55(6), pages 1104-1119, December.
    16. Jakšič Marko & Rusjan Borut, 2009. "Heuristic Approach to Inventory Control with Advance Capacity Information," Organizacija, Sciendo, vol. 42(4), pages 129-136, July.
    17. Katia C. Frank & Hyun‐Soo Ahn & Rachel Q. Zhang, 2009. "Inventory policies for a make‐to‐order system with a perishable component and fixed ordering cost," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(2), pages 127-141, March.
    18. Xinxin Hu & Izak Duenyas & Roman Kapuscinski, 2008. "Optimal Joint Inventory and Transshipment Control Under Uncertain Capacity," Operations Research, INFORMS, vol. 56(4), pages 881-897, August.
    19. Alireza Kabirian, 2012. "The economic production and pricing model with lot-size-dependent production cost," Journal of Global Optimization, Springer, vol. 54(1), pages 1-15, September.
    20. Han Zhu, 2022. "A simple heuristic policy for stochastic inventory systems with both minimum and maximum order quantity requirements," Annals of Operations Research, Springer, vol. 309(1), pages 347-363, February.

    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:pal:jorsoc:v:61:y:2010:i:6:d:10.1057_jors.2009.49. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.