Inventory control with the gamma probability distribution

Research output: Contribution to journalArticleResearchpeer-review

16 Citations (Scopus)

Abstract

Application of inventory theory often rely on the normal and negative exponential distributions to represent the lead time demand of fast and slow moving items respectively. Yet it is now accepted that both distributions, when taken together, are incapable of adequately describing the demand characteristics of all items found in the typical inventory. Instead there has been a growing interest in the use of the gamma probability distribution because it not only encompasses both former distributions as special cases but also covers the gaps left by them. In the process a number of methods for calculating control parameters have appeared in the literature for items with gamma distributed lead time demand. As knowledge about the problem has increased there has been a general tendency towards greater simplification. This paper continues the trend by introducing an approach that depends only on concepts from basic statistics. The aim is to eliminate unnecessary complexity and make the associated theory easier to understand.

Original languageEnglish
Pages (from-to)373-381
Number of pages9
JournalEuropean Journal of Operational Research
Volume17
Issue number3
DOIs
Publication statusPublished - 1 Jan 1984

Keywords

  • distributions statistics
  • Inventory

Cite this

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Inventory control with the gamma probability distribution. / Snyder, R. D.

In: European Journal of Operational Research, Vol. 17, No. 3, 01.01.1984, p. 373-381.

Research output: Contribution to journalArticleResearchpeer-review

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AU - Snyder, R. D.

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