Loading...

Introducing a Strategy for Decision Making in a Multi-Period News-Vendor Problem with Multiple Markets

Lashkaripour, Mohammad Hossein | 2020

448 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 53148 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Haji, Alireza
  7. Abstract:
  8. In this paper, we introduce a novel decision making strategy on how to assign markets to a multi-item newsvendor’s problem. We present a new formulation method based on the integration of news-vendor problem and dynamic programming approach alongside an efficient solution method. Suppose there are n distinct products and corresponding time intervals for selling them in different markets. These products will be worthless (perishable) at the end of each interval. Our proposed framework represents a trade-off between costs associated with staying in a market for further periods and costs of relocating the business in a new market. The objective is to maximize the total profit of our decisions based on both optimal ordering quantity and the optimal market for each product. Also, considering the curse of dimensionality for large scale problems in this class, we address the Genetic Algorithm (GA) as an efficient method to cope with this issue. Moreover, we provide a detailed sensitivity analysis to evaluate the performance of our model. This study can be applied to some real-world situations such as job-shop production, selling tickets by a sport club or a theatre group, or medicine production for seasonal diseases
  9. Keywords:
  10. Genetic Algorithm ; Dynamic Programming ; Sensitivity Analysis ; Multi Product Integration ; Multi-Period Newsvendor Problem ; Multi-Item Inventory Control ; Single Period Problem (SPP)

 Digital Object List

 Bookmark

No TOC