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We study the effects of news shocks on inventory accumulation in a structural VAR framework. We establish that …
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Inventory models need some specification of the distribution of demand in order to find the optimal order-up-to level … approach is to assume a distribution, estimate its parameters and replace the unknown demand parameters by these estimates in … true demand distribution is indeed the assumed one. This paper directs the cause of the underperformance and quantifies it …
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