# Accession Number:

## ADA034413

# Title:

## Inventory Control Using Statistical Estimates: The Power Approximation and Sporadic Demands (Variance/Mean = 9).

# Descriptive Note:

## Technical rept.,

# Corporate Author:

## YALE UNIV NEW HAVEN CONN SCHOOL OF ORGANIZATION AND MANAGEMENT

# Personal Author(s):

# Report Date:

## 1976-11-01

# Pagination or Media Count:

## 60.0

# Abstract:

This study examines the effectiveness of the Power Approximation when there is a considerable probability of zero demand in any period. These sporadic demand sequences are modeled as compound negative binomial distributions, which are specified by a probability q that demand is zero and probability 1-q that demand is negative binomial. In particular, the simulation study that forms the basis of this investigation uses a compound negative binomial distribution with q0.25 and a negative binomial distribution fitted so that the overall variance-to mean ratio is 9.

# Descriptors:

# Subject Categories:

- Statistics and Probability