Applications of invariance to estimation of safety stock levels in inventory model

This paper has investigated the effect of estimation risk on the simplest of inventory problems. It is shown that when estimation risk is ignored, stock levels may be incorrectly compiled and service levels may be inadequate. Also given are the relative efficiencies of the proposed estimators, obtai...

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Bibliographic Details
Published in:Computers & industrial engineering 1999-10, Vol.37 (1), p.247-250
Main Authors: Nechval, Nicholas A., Nechval, Konstantin N.
Format: Article
Language:English
Subjects:
Applied sciences
Estimating techniques
Estimation Risk
Exact sciences and technology
Invariant Insertion Method
Inventory control, production control. Distribution
Inventory management
Inventory Problem
Operational research and scientific management
Operational research. Management science
Risk
Stochastic models
Studies
Uniformly Undominated Estimator
Citations: Items that cite this one
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Summary:This paper has investigated the effect of estimation risk on the simplest of inventory problems. It is shown that when estimation risk is ignored, stock levels may be incorrectly compiled and service levels may be inadequate. Also given are the relative efficiencies of the proposed estimators, obtained by the method of invariant insertion of sample statistics into a performance index, when compared with the maximum likelihood estimator.
ISSN:0360-8352
1879-0550
DOI:10.1016/S0360-8352(99)00066-2