A MIN-MAX SOLUTION OF AN INVENTORY PROBLEM,

Abstract

The paper is concerned with the problem of purchasing a quantity of an item in anticipation of a future demand. It is assumed that only the mean and standard deviation of the demand distribution are known. A stock level is found which maximizes the minimum profit for all demand distributions with this mean and standard deviation. This stock level is then compared with the levels obtained by assuming several specific distributions. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jun 24, 1957
Accession Number
AD0605069

Entities

People

  • H. E. Scarf

Organizations

  • RAND Corporation

Tags

DTIC Thesaurus Topics

  • Computing-Related Activities
  • Data Science
  • Information Science
  • Interdisciplinary Science
  • Inventory
  • Mathematical Analysis
  • Mathematics
  • Standards

Fields of Study

  • Mathematics

Readers

  • Industrial Economics
  • Regression Analysis.