Advances and Applications in Statistics
Volume 32, Issue 1, Pages 1 - 13
(January 2013)
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A PRACTICAL APPROACH FOR ESTIMATING DEMAND IN PERIODICALS WITH MANY RETAILERS AND INFREQUENT STOCKOUTS
Jose Mari Eguzkitza Arrizabalaga
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Abstract: Historical sales and demand are not equivalent when referred to periodicals, since the former are limited by the available stock. When the mean stockout is low and there is no possibility of updating data during the selling period, demand is estimated by means of a maximum-likelihood procedure. The paper reports another practical approach which consists of estimating the lack of issues per out-of-stock period and per point-of-sale. In order to compare both methods, real data on sales of a monthly periodical from Bizkaia are used. The results obtained after using the approximate method do practically coincide with those obtained after using the maximum-likelihood procedure. Moreover, computations were much simpler. |
Keywords and phrases: forecasting demand, newsboy problem, newsvendor problem. |
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