Mixture Distributions for Modeling Lead Time Demand in Coordinated Supply Chains
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Authors
Cobb, Barry
Johnson, Alan W.
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Advisors
Date of Issue
2014-04-30
Date
Publisher
Monterey, CA; Naval Postgraduate School
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Abstract
This paper introduces a mixture distribution approach to modeling the probability density function for lead time demand (LTD) in problems where a continuous review inventory system is implemented. The method differs from the typical “moment-matching” approach by focusing on building up an accurate, closed-form approximation to the LTD distribution from its components by using mixtures of polynomial functions. First, construction of the lead time distribution is illustrated and the approach is compared to two other possible lead time distributions. This distribution is then utilized to determine optimal order policies in a situation where members of a two-level supply chain coordinate their actions.
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Report
Description
Proceedings of the Eleventh Annual Acquisition Research Symposium, Thursday Sessions, Volume II
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Acquisition Research Symposium
Department
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NPS Report Number
NPS-AM-14-C11P16R01-060
Sponsors
Naval Postgraduate School Acquisition Research Program
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.