Parameter estimation and performance measurement in lost sales inventory systems

✍ Scribed by Roger M. Hill

• Publisher: Elsevier Science
• Year: 1992
• Tongue: English
• Weight: 414 KB
• Volume: 28
• Category: Article
• ISSN: 0925-5273
• DOI: 10.1016/0925-5273(92)90033-4

✦ Synopsis

In most retail environments the only information available on customer demand comes from sales data. When a product is out of stock there is generally no knowledge of what potential sales have been lost. This creates problems when it comes to estimating (forecasting) the demand distribution and its parameters. This paper looks at this problem and considers ways of overcoming it, in particular making use of data captured by modem point of sale systems.