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A new model for describing the probability of customer respond in database marketing is proposed. For this model, new robust estimation and forecasting algorithms are developed. The efficiency of the proposed methods is verified via tests on real-life data from mediaplanning.
The paper deals with the lead-time demand forecasting for inventory management of multiple slow-moving items in the case when the available demand history is very short. Two stochastic models of demand are compared: (i) the first based on the “population-averaged” binomial distribution of requests (the traditional approach); and (ii) the second based on the beta-binomial probability distribution that...
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