Estimating the Compound Poisson Demand’s Parameters for Single Period Problem for Large Lot Size

Abstract

We consider a single period problem when the demand is a compound Poisson process with unknown intensity and continuous batch size distribution; and the lot size and the number of customers are large enough. The estimators of the mean and standard deviation of demand for unobserved lost sales are proposed. The procedures are based on the observed selling period’s durations and the demands, and use their marginal asymptotic distributions. Numerical results are given.