|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id913809. ; Size: 232K
|
|
A Generalization of the Inventory Pooling Effect to Non-Normal Dependent Demand
Charles J. Corbett
University of California, Los Angeles - Anderson School of Business
Kumar Rajaram
University of California, Los Angeles - Anderson School of Business
August 11, 2005
Abstract:
Eppen (1979) showed that inventory costs in a centralized system increase with the correlation between multivariate normal product demands. Using multivariate stochastic orders, we generalize this statement to arbitrary distributions. We then describe methods to construct models with arbitrary dependence structure, using the copula of a multivariate distribution to capture the dependence between the components of a random vector. For broad classes of distributions with arbitrary marginals, we confirm that centralization or pooling of inventories is more valuable when demands are less positively dependent.
Number of Pages in PDF File: 23
Keywords: Decisions, Operations , Technology Management, Inventory Pooling Effect, Dependent Demand
working papers series
Download This Paper
Date posted: July 13, 2006
Suggested CitationCorbett, Charles J. and Rajaram, Kumar, A Generalization of the Inventory Pooling Effect to Non-Normal Dependent Demand (August 11, 2005). Available at SSRN: http://ssrn.com/abstract=913809 or http://dx.doi.org/10.2139/ssrn.913809
|
| Feedback to SSRN (Beta) |
|
|
|
|
|
|
