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Incorporating one-way substitution policy into the newsboy problem with imprecise customer demand

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Title Incorporating one-way substitution policy into the newsboy problem with imprecise customer demand
 
Creator DUTTA, P
CHAKRABORTY, D
 
Subject period inventory model
product substitution
fuzzy demand
single
constraint
systems
inventory
newsboy problem
substitution
fuzzy demand
expected profit
 
Description This paper presents an approach for solving an inventory model for single-period products with maximizing its expected profit in a fuzzy environment, in which the retailer has the opportunity for substitution. Though various structures of substitution arise in real life, in this study we consider the fuzzy model for two-item with one-way substitution policy. This one-way substitutability is reasonable when the products can be stored according to certain attribute levels such as quality, brand or package size. Again, to describe uncertainty usually probability density functions are being used. However, there are many situations in real world that utilize knowledge-based information to describe the uncertainty. The objective of this study is to provide an analysis of single-period inventory model in a fuzzy environment that enables us to compute the expected resultant profit under substitution. An efficient numerical search procedure is provided to identify the optimal order quantities, in which the utilization of imprecise demand and the use of one-way substitution policy increase the average expected profit. The benefit of product substitution is illustrated through numerical example. (C) 2008
 
Publisher ELSEVIER SCIENCE BV
 
Date 2011-07-25T07:38:13Z
2011-12-26T12:50:16Z
2011-12-27T05:36:28Z
2011-07-25T07:38:13Z
2011-12-26T12:50:16Z
2011-12-27T05:36:28Z
2010
 
Type Article
 
Identifier EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 200(1), 99-110
0377-2217
http://dx.doi.org/10.1016/j.ejor.2008.12.011
http://dspace.library.iitb.ac.in/xmlui/handle/10054/6676
http://hdl.handle.net/10054/6676
 
Language en