BAYES SEQUENTIAL DESIGN OF STOCK LEVELS,

Abstract

Bayesian determination of optimal stock levels is studied for the case of Poisson distribution of the demand variable, and prior gamma distribution of the expected demand. Bayes sequential procedure is derived, assuming that stock level can be adjusted at the beginning of each period so that a shortage can be immediately replenished and an overstock can be corrected. The Bayes sequential procedure is more difficult to obtain if this assumption is removed. A dynamic programming method for obtaining the general Bayes sequential procedure is outlined. Finally, an empiric Bayes estimation procedure of the optimal Bayesian Bayesian stock level is presented. (Author)

Document Details

Document Type
Technical Report
Publication Date
Nov 18, 1968
Accession Number
AD0679701

Entities

People

  • S. Zacks

Organizations

  • George Washington University

Tags

DTIC Thesaurus Topics

  • Applied Mathematics
  • Computer Programming
  • Computing-Related Activities
  • Dynamic Programming
  • Interdisciplinary Science
  • Mathematical Programming
  • Mathematics
  • Operations Research

Fields of Study

  • Mathematics

Readers

  • Logistics and Supply Chain Management.
  • Statistical inference.

Technology Areas

  • AI & ML
  • AI & ML - Bayesian Inference