Yugoslav Journal of Operations Research 2003 Volume 13, Issue 2, Pages: 217-227
doi:10.2298/YJOR0302217B
Full text ( 372 KB)


Convergence of estimated optimal inventory levels in models with probabilistic demands

Bouza Carlos N.

The behavior of estimations of the optimal inventory level is analyzed. Two models are studied. The demands follow unknown probability distribution function. The included density functions are estimated and a plug-in rule is suggested for computing estimates of the optimal levels. Two search algorithms are proposed and compared using Monte Carlo experiments. .

Keywords: backorders, simulated annealing, density function estimation

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