Questions tagged [probability-distributions]

For questions related to probability distributions, functions that relate a given value to the likelihood that a random variable will take that value.

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Safety stock for log-normal distribution demand

I came across this example on how to model your lead time demand as a log-normal distribution and calculate the safety stock. https://www.linkedin.com/pulse/why-you-keep-missing-your-service-level-...
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Loss functions for specific probability distributions?

For a random variable $X$ with pdf $f(x)$, the loss function* is defined as $$n(x) = \mathbb{E}[(X-x)^+] = \int_{x}^\infty (y-x)f(y)dy,$$ where $a^+ = \max\{a,0\}$. Or, for a discrete distribution, $...