SOME COMMENTS ON NORMAL APPROXIMATION FOR STOCHASTIC DEMAND PROCESSES

In multistage production systems under uncertainty as well as in local decentralized stochastic inventory control systems, there are often e asily described external demand processes and a very complex internal demand depending on the structure of the system, the control policy, a nd the external demand. In this paper we discuss a functional normal a pproximation for an internal demand process by a Wiener process with d rift. We apply our approach to Sherbrooke's two-echelon model.