An EOQ model with random variations in demand
Article Abstract:
A model that includes the changes in the demand rate at random time points into the inventory planning decision is developed. These demand variations may arise out of economic recessions, start or end of labor strikes, and other events that result in an increase or decrease in the rate of demand. System-point level-crossing theory is used to generate expressions for the distribution and expected value of on-hand inventory, ordering rate and the expected total cost rate for a particular ordering policy. The model shows that, regardless of the actual demand rate, the cost penalty for employing the same stocking decision is very minimal if the disruption in demand is relatively insignificant. It also shows that are benefits if the inventory levels are adjusted in situations where there is a major demand disruption.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1995
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A note on a risk-return measure of hedging effectiveness
Article Abstract:
An extension of the 1995 study of Kuo and Chen, which suggests a simplified version of the hedging effectiveness model of Howard and D'Antonio, has been able to obtain the second order conditions (SOCs) and the optimal ratio of the aforementioned model. The initial reports on the SOCs by Chang and Chanker in 1987, and Howard and D'Antonio in 1984 and 1987 were not correct. The rectified version of the SOCs reveals that a priori assumptions regrading risk-return relatives separating futures and spots assets are negligible when aiming to fulfill SOC conditions.
Publication Name: Journal of Futures Markets
Subject: Business, general
ISSN: 0270-7314
Year: 1998
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A model for predicting frequencies of random events
Article Abstract:
A new method is offered for forecasting frequencies over time for individuals. The method described allows prediction of future events through an estimation procedure based on historical information. The method for estimation entails consideration of two kinds of uncertainty: individual propensity to change, and population variation. The key conceptual feature of the model is a non-homogeneous process.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1987
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