To model demand, the normal distribution is by far the most popular; the disadvantage that it takes negative values is taken for granted.This paper proposes two modi.cations of the normal distribution, both taking non-negative values only.Safety factors and order-up-to-levels for the familiar (R, S)-control system are derived and compared with the standard values corresponding with the original normal distribution.
|Place of Publication||Tilburg|
|Number of pages||14|
|Publication status||Published - 2003|
|Name||CentER Discussion Paper|