Title :
Inventory management with substitution and unreliable supplier
Author :
Gan, Xiaobing ; Hou, Chenfang ; Ma, Lijun
Author_Institution :
Coll. of Manage., ShenZhen Univ., Shenzhen, China
Abstract :
The newsvendor problem is about how to make optimal ordering decisions for short-life cycle product with demand uncertainty. Few papers study inventory problem with unreliable suppliers, even for those who consider unreliable suppliers, very few are concerned with demand lost. In this paper, we model the newsvendor decision making behavior, which takes the unreliable suppliers and demand lost into consideration. We get optimal ordering quantity and find that substitutions affect the ordering quantity.
Keywords :
decision making; order processing; supply and demand; uncertainty handling; demand lost; demand uncertainty; inventory management; newsvendor decision making behavior; optimal ordering decisions; short-life cycle product; unreliable supplier; Decision making; Inventory management; Numerical models; Operations research; Supply chains; Uncertainty; Newsvendor; Substitution; Supply Chain; Unreliable Supply;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2011 8th International Conference on
Conference_Location :
Tianjin
Print_ISBN :
978-1-61284-310-0
DOI :
10.1109/ICSSSM.2011.5959528