Estimating the reorder point for a fill-rate target under a continuous review policy in the presence of non-standard lead-time demand distributions

Skewed and multimodal lead-time demand (LTD) distributions can be present in supply chains. Under these conditions, logistics managers find that conventional approaches, which assume standard LTD distribution shapes, yield unreliable estimates of a single item’s reorder point (ROP) relation to meeting fill-rate targets under continuous review inventory policy. Furthermore, have limited data available from determine the true shape underlying distribution. In this study, I non-parametric bootstrap approach set least-biased estimate ROP. addition, deriving expressions for non-standard derive shapes ROP across range fill rates. Thus, eliminating double counting stockouts with measures. Using Monte Carlo simulation experiments, show comparison state-of-the-art approaches yields robust both sample size. This research offers more accurate estimators, serve as basis expanding scope future management enabling reduce while maintaining even improving