Model Perspective
Aug 20, 2022 · Operations
How a Simple Weekly Restocking Rule Reduces Piano Stockouts
This article models a piano retailer’s weekly demand as a Poisson process, applies a restocking policy that orders three units only when inventory hits zero, and uses a Markov chain to estimate a roughly 10% stockout probability and an average weekly sale of 0.857 units, while also exploring sensitivity to demand changes.
Markov ChainPoisson demandinventory management
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