Well adjusted: Using expediting and cancelation to manage store replenishment inventory for a seasonal good

Gregory D. DeYong and Kyle D. Cattani

European Journal of Operational Research, 2012, vol. 220, issue 1, 93-105

Abstract: We consider an inventory problem that can be translated into a two-period newsvendor setting where the day prior to sales, the newsvendor places an initial preliminary order—a semi-binding forecast—with the publisher. At the beginning of the actual day of sales, the newsvendor has a better forecast for the day’s demand: based on knowing the actual content of the paper, he knows whether it will be a high-demand day due to breaking news or a low-demand day due to slow news. He then can revise the preliminary order quantity by expediting additional papers or canceling all or part of the order, but each of these activities has an associated cost.

Keywords: Supply chain management; Two-period newsvendor; Stochastic inventory models; Expediting and cancelation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:220:y:2012:i:1:p:93-105

DOI: 10.1016/j.ejor.2012.01.029

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