Poisson Stock Levels Approximation,

Abstract

An analysis on the effect of using the theory of the normal distribution to approximate the Poisson computation of stock levels is described. The premise of the analysis is that the approximation will reduce the computational time involved in computing stock levels using the iterative Poisson process. This analysis is therefore directed to the task of determining if and where this approximation technique can be applied accurately. The Poisson iterative process and the Normal approximation technique are utilized to compute stock levels. The results of the two computational methods are then compared. The findings indicate that the approximation technique provides accuracy which should suffice for most Navy applications. For protection levels between 1% and 99%, the maximum difference found is one unit of stock. (Author)

Document Details

Document Type
Technical Report
Publication Date
Oct 16, 1972
Accession Number
AD0749922

Entities

People

  • R. J. Gabriel

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accuracy
  • Computational Science
  • Computations
  • Mathematical Analysis
  • Mathematics
  • Normal Distribution

Readers

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  • Systems Analysis and Design