A Copula Approach to Inventory Pooling Problems with Newsvendor Products

Burcu Aydın (), Kemal Guler () and Enis Kayış ()
Additional contact information
Burcu Aydın: HP Labs
Kemal Guler: HP Labs
Enis Kayış: HP Labs

Chapter Chapter 3 in Handbook of Newsvendor Problems, 2012, pp 81-101 from Springer

Abstract: Abstract This study focuses on the inventory pooling problem under the newsvendor framework. The specific focus is the change in inventory levels when product inventories are pooled. We provide analytical conditions under which an increase (or decrease) in the total inventory levels should be expected. We introduce the copula framework to model a wide range of dependence structures between pooled demands, and provide a numerical study that gives valuable insights into the effects of marginal demand distributions and dependence structure on inventory pooling decisions.

Keywords: Copula approach; Inventory pooling; Multiple sources; Total inventory levels; Sklar’s Theorem (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-1-4614-3600-3_3

Ordering information: This item can be ordered from
http://www.springer.com/9781461436003

DOI: 10.1007/978-1-4614-3600-3_3

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().