An analytical comparison of several statistical techniques for the prediction of demand

Abstract

The purpose of this investigation is to compare three generally accepted statistical decision- making techniques with reference to their applicability to the problem of demand prediction» The three techniques are (1) a modified Bayesian Decision-Making procedure, (2) a modified C-Chart procedure, and (3) a Sequential decision procedure which includes the use of the Likelihood-Ratlo Test.This investigation will be confined to the problem of demand prediction which is an Integral part of the over-all problem of provisioning and inventory policies.