The uniform distribution product: an approach to the inventory model using R

Amílcar Oliveira, Teresa Oliveira and Antonio Seijas-Macías

Journal of Applied Statistics, 2018, vol. 45, issue 2, 284-297

Abstract: In this work the probability density function (PDF) for the product of two uniformly distributed random variables is explored under the implementation of a new procedure in R language. Based on the Rohatgi theorem for the theoretical form of the product, different possibilities for the range of values of the limits of both distributions are considered. As an application, the management of a $ (Q,r) $ (Q,r) inventory model with the presence of lead-time and uniform demand forecasts is considered. Solution to this model looks up to minimize the total costs through the variables Q (reorder quantity) and r (the reorder point), and not always exists an analytical solution of the problem. We show a graphical procedure for the simulation results and a more exactly analytical solution. Implementation in R is straightforward.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:taf:japsta:v:45:y:2018:i:2:p:284-297

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DOI: 10.1080/02664763.2016.1275531

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