Monotone Forecasts

Abstract

In this paper we provide necessary and sufficient conditions for the distribution of demand in the future to be stochastically increasing in the demand that has been observed in the past. We base our analysis on the multiperiod inventory model examined by Eppen and Iyer (1997). In the process of establishing the necessary and sufficient conditions we develop a new property called the sequential monotone likelihood ratio property.

DOI: 10.1287/opre.1030.0097

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Cite this paper

@article{Haksz2004MonotoneF, title={Monotone Forecasts}, author={Çagri Haks{\"{o}z and Sridhar Seshadri}, journal={Operations Research}, year={2004}, volume={52}, pages={478-486} }