Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Diagnosis of Lead Time Demand Based on the Characteristics of Negative Binomial Distribution

음이항분포의 특성을 이용한 조달기간 수요 분석

  • Ahn, Sun-Eung (Department of Industrial Engineering, Hanyang University) ;
  • Kim, Woo-Hyun (Department of Industrial Engineering, Hanyang University)
  • 안선응 (한양대학교 산업공학과) ;
  • 김우현 (한양대학교 산업공학과)
  • Published : 2005.12.31
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Abstract

Some distributions have been used for diagnosing the lead time demand distribution in inventory system. In this paper, we describe the negative binomial distribution as a suitable demand distribution for a specific retail inventory management application. We here assume that customer order sizes are described by the Poisson distribution with the random parameter following a gamma distribution. This implies in turn that the negative binomial distribution is obtained by mixing the mean of the Poisson distribution with a gamma distribution. The purpose of this paper is to give an interpretation of the negative binomial demand process by considering the sources of variability in the unknown Poisson parameter. Such variability comes from the unknown demand rate and the unknown lead time interval.

Keywords

References

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