Estimating the demand for a new product during lead-time is important for product inventory management. The International

Question:

Estimating the demand for a new product during lead-time is important for product inventory management. The International Journal of Production Economics (August 2008) demonstrated that the demand distribution for a new product during lead-time may be best modeled by the uniform distribution. The only parameters that need to be known are the minimum and maximum values of demand. In a numerical example presented in the article, the maximum demand for a new product was estimated to be 100 units. Obviously, the minimum demand is 0 units. Assume that demand, x, has a uniform distribution.

a. Give a formula for the probability density function for x.

b. Find the mean and variance of x.

c. Find the probability that the demand for the new product is less than 30 units.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Business And Economics

ISBN: 9780136855354

14th Edition

Authors: James T. McClave, P. George Benson, Terry T Sincich

Question Posted: