The compound distribution is of interest for the study of inventoryproblem, since it provides a more flexible description ofthe stochastic properties of the system compared to many otherapproaches such as renewal processes. However, due to the difficultiesof obtaining analytical results for the compound distribution,such a type of study is usually limited to searching for agood approximation for replacing the complex model. This paperinvestigates the possibility to extend a previous stochastic inventorymodel to cover a compound demand process. Transformmethods again play an imp01tant role in the analysis forcapturing the stochastic prope1ties of the compound distribution.
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