Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Characterizing the frequency of orders received by a stockist
AU - Shale, E. A.
AU - Boylan, J. E.
AU - Johnston, F. R.
N1 - Accepted 19/11/2007
PY - 2008
Y1 - 2008
N2 - It is regularly asserted that the frequency of orders received by a stockist can be represented as a Poisson process, but very little corroborative evidence has been published. This paper presents some results supporting the assumption. An adaptation to the standard testing methodology is presented which overcomes the complications arising from the necessity of sampling from time series data. The new approach is applied to a large range of stock-keeping units. Except for the extreme tail of the distribution, which is of little interest for most inventory applications, it is found that the frequency of orders is well represented by a Poisson process.
AB - It is regularly asserted that the frequency of orders received by a stockist can be represented as a Poisson process, but very little corroborative evidence has been published. This paper presents some results supporting the assumption. An adaptation to the standard testing methodology is presented which overcomes the complications arising from the necessity of sampling from time series data. The new approach is applied to a large range of stock-keeping units. Except for the extreme tail of the distribution, which is of little interest for most inventory applications, it is found that the frequency of orders is well represented by a Poisson process.
KW - forecasting
KW - inventory control
KW - intermittent demand
U2 - 10.1093/imaman/dpm038
DO - 10.1093/imaman/dpm038
M3 - Journal article
VL - 19
SP - 137
EP - 143
JO - IMA Journal of Management Mathematics
JF - IMA Journal of Management Mathematics
SN - 1471-678X
IS - 2
ER -