The effect of imperfect production processes on lot sizing decisions received a lot of attention in the literature. These efforts have been almost confined to single stage production systems. The issue of imperfect production processes has not been adequately addressed in the context of multistage production/inventory systems. In this paper, we propose a two-stage production inventory model tha...

This paper considers a modified empirical likelihood and uses it to estimate models with imperfect moment restrictions. Consistency, local normality and asymptotic optimality of the new estimator only require the local identifiability and the linear-quadratic representation. In imperfect situations, classical sandwich algorithms give bias estimations while the new estimator preserves its asympt...