statistical test to select a mixture distribution for lead time demand. This distribution is incorporated into an expected … shortage calculation and cost model where shortages incur lost sales and/or goodwill costs. The lead time demand distribution …

To construct an accurate probability density function for lead time demand in inventory management models, a mixture of … approach is then applied to model lead time demand in a continuous review inventory system. Inventory policies can be … approach that models the lead time demand distribution with a mixture of truncated exponentials (MTEs) distribution is also …