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Extended Newsvendor Model
Extended newsvendor models are variations of the classic newsvendor model involving production capacity constraints, multiple products, multiple production cycles, demand dependent selling price, etc. that appear in the Operations management literature. Further reading * E. J. LodreeA Simulation Optimization Approach for the Two-Product Newsvendor Problem* P. Mileff, K. NehezAn Extended Newsvendor Model for Customized Mass Production AOM – Advanced modeling and Optimization. Electronic International Journal, Volume 8, Number 2. pp 169–186. (2006) * P. Mileff, K. NehezEvaluating the Proper Service Level In a Cooperate Supply Chain Environment MIM'07. IFAC workshop on manufacturing modelling, management and control. Budapest, Hungary. pp 123–126. (2007) Inventory optimization {{tech-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Newsvendor Model
The newsvendor (or newsboy or single-periodWilliam J. Stevenson, Operations Management. 10th edition, 2009; page 581 or salvageable) model is a mathematical model in operations management and applied economics used to determine optimal inventory levels. It is (typically) characterized by fixed prices and uncertain demand for a perishable product. If the inventory level is q, each unit of demand above q is lost in potential sales. This model is also known as the ''newsvendor problem'' or ''newsboy problem'' by analogy with the situation faced by a newspaper vendor who must decide how many copies of the day's paper to stock in the face of uncertain demand and knowing that unsold copies will be worthless at the end of the day. History The mathematical problem appears to date from 1888 where Edgeworth used the central limit theorem to determine the optimal cash reserves to satisfy random withdrawals from depositors. According to Chen, Cheng, Choi and Wang (2016), the term "newsb ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
