On the demand pooling anomaly in inventory theory

On the demand pooling anomaly in inventory theory

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Article ID: iaor201111217
Volume: 39
Issue: 6
Start Page Number: 411
End Page Number: 413
Publication Date: Nov 2011
Journal: Operations Research Letters
Authors: , ,
Keywords: demand
Abstract:

The demand pooling anomaly of inventory theory of type F amounts to a kind of restricted order relation between the individual demands (assumed to be independent) and their average. In this paper, we present some sufficient conditions for the type F anomaly not to occur for two i.i.d. demands; furthermore we provide an asymptotic result showing whether this anomaly occurs for large n for a class of distributions containing all distributions with finite mean.

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