Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1033121 | Omega | 2009 | 10 Pages |
Abstract
A special form of the single-period inventory problem (newsvendor problem) with a known demand and stochastic supply (yield) is studied. A general analytic solution for two types of yield risks, additive and multiplicative, is described. Numerical examples demonstrate the solutions for special cases of uniform distribution yield risks. An analysis of a two-tier supply chain of customer and producer reveals that the customer may find it optimal to order more than is needed, since a larger order increases the producer's optimal production quantity.
Related Topics
Social Sciences and Humanities
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Strategy and Management
Authors
Baruch Keren,