Supply Chain Replenishment Decision for Newsvendor Products with Multiple Periods and a Short Life Cycle

Chun-Chin Wei and Liang-Tu Chen
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Chun-Chin Wei: Department of Marketing and Distribution Management, Chien Hsin University of Science and Technology, Taoyuan City 320, Taiwan
Liang-Tu Chen: Department of Commerce Automation and Management, National Pingtung University, Pingtung City 900, Taiwan

Sustainability, 2021, vol. 13, issue 22, 1-13

Abstract: Traditionally, the newsvendor problem is a single-period model for a retailer and can be applied in the replenishment decision for a product with a short life cycle. However, many fashionable commodities are seasonal; not all of these products must be sold within a single period of a selling season, and they can be replenished once in each cycle. This study develops a novel multi-period model to determine multiple ordering replenishment decisions for a product over a short selling season. This study not only demonstrates the profit function for a retailer, but also provides those for both the manufacturer and the entire channel in a supply chain problem. The proposed multi-period ordering model provides explicit insights into how the ordering decisions of the retailer are affected in a specific period by considering unsold inventory or unsatisfied demand from a previous period. A numerical analysis and the simulation results illustrate the feasibility of the proposed model.

Keywords: supply chain management; inventory management; newsvendor; multiple period (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:22:p:12777-:d:682366

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