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A Note on Closure Properties of Failure Rate Distributions

Department of Decision and Information Sciences, Warrington College of Business, University of Florida, 351 Stuzin Hall, P.O. Box 117169, Gainesville, Florida 32611
paulaa{at}ufl.edu

Increasing generalized failure rate (IGFR) distributions were introduced as a tool in the study of contracting mechanisms in supply chains. In this note, we compare and contrast the closure—and the lack thereof—of IGFR and increasing failure rate (IFR) distributions with respect to standard operations on random variables. Some implications of these results for the use of IGFR distributions in supply chain models are noted.

Subject classifications: inventory/production:stochastic models; probability:distributions.
History: Received January 2004; revision received August 2004; accepted September 2004.

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