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10 votes

Good distribution assumptions for customer demand in a supply chain

I agree with @QianZhang's answer (nice theoretical properties, easy to implement), and I would add that there is some theoretical justification too. If demands come from customer arrivals, then ...
LarrySnyder610's user avatar
9 votes

Good distribution assumptions for customer demand in a supply chain

In my understanding, using normal/Poisson distribution for customer demand is mainly for two reasons. These distributions have nice properties for theoretical analysis in supply chain models These ...
Qian Zhang's user avatar
9 votes
Accepted

Real world demand dataset

Time Series Data Library The time series data library from Rob Hyndman has hundreds (~648+) of time-series data. It depends on what you call "demand" and what you require as a "sufficiently long ...
SecretAgentMan's user avatar
4 votes

use Forecast distribution width in inventory optimization

Here are three distinct fields of research, any of which might (or might not) be useful to you. Robust optimization deals with uncertainty in the parameters of an optimization model by focusing on ...
prubin's user avatar
  • 39.3k
4 votes

Estimating optimal inventory in times of high uncertainty due to coronavirus

This is indeed a newsvendor problem. The fact that D is very uncertain only makes it more so. If we were in normal times, the standard approach would be: Use your historical data to calculate $\hat{\...
LarrySnyder610's user avatar
4 votes

Good distribution assumptions for customer demand in a supply chain

Question: Why do we normally assume normal distribution/Poisson distribution for customer demand in a supply chain? Answer : Based on my experience in the industry, I have seen that generally, ...
Lal's user avatar
  • 81
3 votes

Priority based demand fulfilment in Linear Constraint

You could model it as follows: Let $c_i$ the capacity of source $i$. Let $x_i$ the amount of demand source $i$ fills. Further, you can introduce variable $y_i$ that is binary and takes value 0 if $x_i ...
PeterD's user avatar
  • 1,636
3 votes

Good distribution assumptions for customer demand in a supply chain

Theoretically it is quite naturally convincing to assume that demand time points are independent. In other words knowing that an item was bought in t1 does not give ...
abhiieor's user avatar
  • 231
2 votes

Estimating optimal inventory in times of high uncertainty due to coronavirus

There are quite a few wrinkles here, specific to the current sources of uncertainty. Will the suppliers be giving discounts (to get orders after coming off a shutdown)? Discounts would reduce the risk ...
prubin's user avatar
  • 39.3k
1 vote

use Forecast distribution width in inventory optimization

One addition to the optimization methods/concepts that Prubin proposed is simulation-optimization: https://www.informs-sim.org/wsc97papers/0118.PDF.
Steven01123581321's user avatar
1 vote
Accepted

lsqcurvefit error in simulation of demands in MATLAB

My professor helped me for solving this error like below: ...
ramin's user avatar
  • 55

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