Journal ArticleDOI
Newsvendor models with dependent random supply and demand
Reads0
Chats0
TLDR
This work considers an extention where supply is also random so that the quantity ordered is not necessarily received in full at the beginning of the period and focuses on the resulting optimization problem and provides interesting characterizations on the optimal order quantity.Abstract:
The newsvendor model is perhaps the most widely analyzed model in inventory management. In this single-period model, the only source of randomness is the demand during the period and one tries to determine the optimal order quantity in view of various cost factors. We consider an extention where supply is also random so that the quantity ordered is not necessarily received in full at the beginning of the period. Such models have been well-received in the literature with the assumption of independence between demand and supply. In this setting, we suppose that the random demand and supply are not necessarily independent. We focus on the resulting optimization problem and provide interesting characterizations on the optimal order quantity.read more
Citations
More filters
Journal ArticleDOI
An EOQ model for stochastic demand for limited capacity of own warehouse
TL;DR: The expected average cost function is formulated for both continuous and discrete distributions of demand function by trading off holding costs and stock out penalty.
Journal ArticleDOI
Tractable reformulations of two-stage distributionally robust linear programs over the type-∞ Wasserstein ball
TL;DR: A two-stage distributionally robust stochastic linear program under the type- ∞ Wasserstein ball is studied by providing sufficient conditions under which the program can be efficiently computed via a tractable convex program.
Journal ArticleDOI
Mean-Variance Newsvendor Model with Random Supply and Financial Hedging
Müge Tekin,Süleyman Özekici +1 more
TL;DR: In this article, the authors follow a mean-variance (MV) approach to the newsvendor model, which considers the risks in demand as well as supply, and provide explicit characterizations on the structure of the optimal policy.
Journal ArticleDOI
EOQ with independent endogenous supply disruptions
TL;DR: This work develops a unified (and exact) average cost model for both costing schemes, valid for two common accounting schemes for inventory cost evaluation: continuous and end-of-cycle costing, and finds the optimal policy variables and cost prevail in closed-form under continuous costing.
Journal ArticleDOI
Newsvendor model with random supply and financial hedging: Utility-based approach
TL;DR: In this paper, the authors take a utility-based approach to the single-period and single-item newsvendor model, where the news vendor is not necessarily risk-neutral and chooses the order quantity that maximizes the expected utility of the cash flow at the end of the period.
References
More filters
Book
Inventory management and production planning and scheduling
TL;DR: In this paper, the authors present a framework for inventory management and production planning and scheduling with a focus on the most important (Class A) and routine (Class C) items.
Journal Article
Managing Risk To Avoid Supply-Chain Breakdown
Sunil Chopra,ManMohan S. Sodhi +1 more
TL;DR: In this article, a "what if?" team exercise called "stress testing" is used to identify potentially weak links in the supply chain and then select the best mitigation strategy: holding "reserves," pooling inventory, using redundant suppliers, balancing capacity and inventory, implementing robust backup and recovery systems, adjusting pricing and incentives, bringing or keeping production in-house, and using Continuous Replenishment Programs (CRP), Collaborative Planning, Forecasting, and other supply-chain initiatives.
Journal ArticleDOI
Supply chain risk management: Understanding the business requirements from a practitioner perspective
TL;DR: In this paper, business requirements for supply chain risk management (SCRM) from a practitioner perspective are presented from an exploratory quantitative survey and qualitative focus group discussions with supply chain managers, some issues of SCRM are derived and structured along the three conceptual levels of "philosophy", "principles" and "processes".
Journal ArticleDOI
Ericsson’s Proactive Supply Chain Risk Management-approach After a Serious Supplier Accident
Andreas Norrman,Ulf Jansson +1 more
TL;DR: In this article, the authors describe how after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM.
Journal ArticleDOI
Lot Sizing with Random Yields: A Review
Candace Arai Yano,Hau L. Lee +1 more
TL;DR: A review of the existing literature on quantitatively-oriented approaches for determining lot sizes when production or procurement yields are random identifies a variety of shortcomings of the literature in addressing problems encountered in practice, and suggests directions for future research.
Related Papers (5)
The Impact of Yield-Dependent Trading Costs on Pricing and Production Planning Under Supply Uncertainty
Burak Kazaz,Scott Webster +1 more