A multi-product newsboy problem with an inventory space constraint
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A multi-product newsboy problem with an inventory space constraint
Hon-Shiang Lau, Amy Hing-Ling Lau
Layek L. Abdel-Malek, Roberto Montanari
Contents
1.
Introduction ......................................................................................................................... 2
2.
Approach ............................................................................................................................. 2
2.1.
2.2.
3.
Mathematical formulation ............................................................................................ 2
Solution........................................................................................................................ 4
Numerical examples ............................................................................................................ 7
3.1.
3.2.
4.
Example 1 .................................................................................................................... 7
Example 2 .................................................................................................................... 9
Conclusion......................................................................................................................... 10
References ................................................................................................................................ 11
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1. Introduction
The Newsboy problem is a classical and significant inventory problem. It is normally known as the single period inventory model. It is a suitable tool to decide the stock quantity of an item when there is a single purchasing opportunity before the start of the selling period and the demand for the item is uncertain. We can find such a model in problems dealing with the stocking of spare parts, perishable items, style goods or special seasonal products, etc.
This paper considers a multi-item scenario, in which one has to find the optimum
A multi-product newsboy problem with an inventory space constraint
Hon-Shiang Lau, Amy Hing-Ling Lau
Layek L. Abdel-Malek, Roberto Montanari
Contents
1.
Introduction ......................................................................................................................... 2
2.
Approach ............................................................................................................................. 2
2.1.
2.2.
3.
Mathematical formulation ............................................................................................ 2
Solution........................................................................................................................ 4
Numerical examples ............................................................................................................ 7
3.1.
3.2.
4.
Example 1 .................................................................................................................... 7
Example 2 .................................................................................................................... 9
Conclusion......................................................................................................................... 10
References ................................................................................................................................ 11
2
1. Introduction
The Newsboy problem is a classical and significant inventory problem. It is normally known as the single period inventory model. It is a suitable tool to decide the stock quantity of an item when there is a single purchasing opportunity before the start of the selling period and the demand for the item is uncertain. We can find such a model in problems dealing with the stocking of spare parts, perishable items, style goods or special seasonal products, etc.
This paper considers a multi-item scenario, in which one has to find the optimum
References: Lau, H.S., Lau, A.H.L., 1996. The newsstand problem: A capacitated multiple-product singleperiod inventory problem Abdel‐Malek, L.L. and R. Montanari, An analysis of the multi‐product newsboy problem with a budget constraint, International Journal of Production Economics (IJPE), Vol. 97, No. 3, 2005; pp. 296‐307. Tempelmeier, H., Inventory Management in Supply Networks: Problems, Models, Solutions, Norderstedt 2011, Chapter C.2.1. Operations research – Applications and Algorithms, 4th edition (Wayne L. Winston)