Research Article

Estimation of Jointly Normally Distributed Demand for Cross-Selling Items in Inventory Systems with Lost Sales

Table 3

Parameters and notations.

Parameters/notationsMeaning

Indices of items
Unknown original “naked” demand for items and
The realized original “naked” demand of items and
Observed demand, i.e., the realized quantity of sales of items and
Means of demand (demand expectations) for items and to be estimated
Standard deviation of demand for items and to be estimated
Correlation coefficient of the original demand to be estimated
, Order quantities of items and
Cross-selling coefficients
Means of the sampled sales data of items and
Estimators of and
Estimators of and
Estimator of
Quantile of standard normal distribution
Total number of sampled data (sample size)