On Transition Procedure Using an Optimal Quantile Estimator under Uncertainty

This paper deals with the perishable inventory models with uncertainties of demand functions. The traditional perishable inventory costs of holding and stockout are incorporated into the cost function. The average expected cost will be minimized to find the optimal quantile estimator. After three candidate estimators are proposed on the basis of order statistics, they will be evaluated by the simulation results and statistical analysis. Then the transition procedure algorithm using this estimator will be proposed to make the optimal decision under uncertainty.