Estimating Achievable Capacity Index based on Multiple Samples

Abstract

This paper investigates the profitability which measures for the newsboy-type product and develops a new index "Achievable Capacity Index", denoted by I-A. It can accurately measure the profitability of newsboy-type product with normally distributed demand. Furthermore, the interrelationship between profitability and I-A is also performed. An unbiased and effective estimator is derived to estimate I-A. Practically, market information regarding demand is obtained from multiple samples rather than single sample. Then we estimate I-A based on multiple samples. Finally, a numerical result is presented to show the probability density function of the unbiased estimator of (I) over cap (A) under different groups and sample sizes. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Asia Pacific Business Innovation and Technology Management Society