Title: Analytical characterisations of a seasonal compound Poisson demand process with growth trend

Authors: Rongfang Yan; Kangzhou Wang; Guowei Li; Na Li

Addresses: College of Mathematics and Statistics, Northwest Normal University, 967 An Ning East Road, Lanzhou 730070, China ' Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 1954 Hua Shan Road, Shanghai 200030, China ' Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 1954 Hua Shan Road, Shanghai 200030, China; Jiangsu Miracle Logistics System Engineering Co., Ltd., 288 Luoou Road, Luoshe Town, Huishan District, Wuxi 214187, China ' Department of Industrial Engineering & Logistics Management, Shanghai Jiao Tong University, 800 Dong Chuan Road, Shanghai 200240, China

Abstract: The seasonal compound distribution is of interest for the study of operations management, since it is widespread in reality. However, due to the difficulties involved in obtaining the analytical results for the seasonal compound distribution, studies are usually limited to employing stationary compound Poisson process. In the paper, the demand occurring in seasonal random environments with trend is discussed. We present a demand model in which demand occurs according to a homogeneous Poisson process and demand sizes varying seasonally. As the main results, the general closed-form formulae for calculating demand, cumulative demand up to any time, and their Laplace transforms are developed, respectively. The analytical results of the seasonal demand model provide the operations management studies such as production/inventory control, service capacity planning and supply chain management under seasonal demand environment with a corner stone, which can be directly used to describe the demand of various operations management studies.

Keywords: seasonal demand; compound Poisson process; growth trend; Laplace transforms; operations management; demand modelling; production control; inventory control; service capacity planning; supply chain management; SCM.

DOI: 10.1504/IJSOI.2012.051395

International Journal of Services Operations and Informatics, 2012 Vol.7 No.2/3, pp.167 - 181

Available online: 30 Dec 2012 *

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