Concept
The Prior Probability Distribution is an aggregate distribution spanning all parts held.
It answers this example question:
“What is the probability of seeing a demand of 3 units for any random part we supply?”
This distribution spans the mean annual demand levels 1 to 24 and it is assumed to be a Log Normal Distribution.
Related Concepts, Formulas, and Guides
Service Parts Profit Optimization
For more concepts, guides, and formulas related to Service Parts Profit Optimization visit the Firefly Semantics Service Parts Profit Optimization Help Center:
