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Exploring the Potential Use of the Birnbaum-Saunders Distribution in Inventory Management
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-10-25
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Choosing the suitable demand distribution during lead-time is an important issue in inventory models.
Much research has explored the advantage of following a distributional assumption different from the normality.
The Birnbaum-Saunders (BS) distribution is a probabilistic model that has its genesis in engineering but is also being widely applied to other fields including business, industry, and management.
We conduct numeric experiments using the R statistical software to assess the adequacy of the BS distribution against the normal and gamma distributions in light of the traditional lot size-reorder point inventory model, known as ( Q , r ).
The BS distribution is well-known to be robust to extreme values; indeed, results indicate that it is a more adequate assumption under higher values of the lead-time demand coefficient of variation, thus outperforming the gamma and the normal assumptions.
American Psychological Association (APA)
Wanke, Peter& Leiva, Víctor. 2015. Exploring the Potential Use of the Birnbaum-Saunders Distribution in Inventory Management. Mathematical Problems in Engineering،Vol. 2015, no. 2015, pp.1-9.
https://search.emarefa.net/detail/BIM-1074831
Modern Language Association (MLA)
Wanke, Peter& Leiva, Víctor. Exploring the Potential Use of the Birnbaum-Saunders Distribution in Inventory Management. Mathematical Problems in Engineering No. 2015 (2015), pp.1-9.
https://search.emarefa.net/detail/BIM-1074831
American Medical Association (AMA)
Wanke, Peter& Leiva, Víctor. Exploring the Potential Use of the Birnbaum-Saunders Distribution in Inventory Management. Mathematical Problems in Engineering. 2015. Vol. 2015, no. 2015, pp.1-9.
https://search.emarefa.net/detail/BIM-1074831
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1074831