Demand during lead time: simulation
The
demand during lead time is computed through convolution of the demand distribution.
Period demand and lead time follow discrete distributions.
As an alternative consider
to use the analytical convolution procedure.
Symbols:
P{L=l}
|
(discrete)
probability
distribution of the lead time
|
P{D=d}
|
(discrete)
probability
distribution of the period demand
|
L |
lead
time |
D |
period demand
|
N
|
number of simulation runs |
- Tempelmeier
(2006)
|