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The newsboy problem with random defective and probabilistic initial inventory

Haji, A ; Sharif University of Technology | 2006

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  1. Type of Document: Article
  2. Publisher: 2006
  3. Abstract:
  4. The classical single-period problem (SPP) is to find a product's order quantity that maximizes the expected profit in a single period under probabilistic demand. In this paper we consider a SPP model in which a percent of the quantity ordered to the supplier contains defective units and is a random variable with a known distribution function. We assume that the initial inventory at the beginning of the period is a random variable. This assumption, among other applications, may apply to the case where the decision about the order quantity must be made at a time long before the start of the period and the available inventory may decrease stochastically due to several factors, such as deterioration, consumption, etc. up to the start of the period. In this paper we obtain the optimal order quantity which maximizes the total profit for the above model
  5. Keywords:
  6. Defective ; Expected profits ; Inventory management ; Newsboy problem ; Optimal order quantity ; Order quantity ; Single period ; Total profits ; Industrial engineering ; Inventory control ; Random variables ; Profitability
  7. Source: 36th International Conference on Computers and Industrial Engineering, ICC and IE 2006, Taipei, 20 June 2006 through 23 June 2006 ; 2006 , Pages 3498-3502
  8. URL: https://www.researchgate.net/publication/288050317_The_newsboy_problem_with_random_defective_and_probabilistic_initial_inventory