| Article ID: | iaor20073200 |
| Country: | United States |
| Volume: | 52 |
| Issue: | 3 |
| Start Page Number: | 478 |
| End Page Number: | 486 |
| Publication Date: | May 2004 |
| Journal: | Operations Research |
| Authors: | Seshadri Sridhar, Haksz agri |
| Keywords: | forecasting: applications |
In this paper we provide necessary and sufficient conditions for the distribution of demand in the future to be stochastically increasing in the demand that has been observed in the past. We base our analysis on the multiperiod inventory model examined by Eppen and Iyer. In the process of establishing the necessary and sufficient conditions we develop a new property called the sequential monotone likelihood ratio property.