Extending the newsvendor model to account for uncontrolled inventory transfers
Kartikeya Puranam (),
David C. Novak () and
Marilyn Lucas ()
Additional contact information
Kartikeya Puranam: La Salle University
David C. Novak: University of Vermont
Marilyn Lucas: University of Vermont
Annals of Operations Research, 2022, vol. 317, issue 1, No 11, 213-226
Abstract:
Abstract In this paper we consider the single-period newsvendor model with uncontrolled inventory transfers. The newsvendor or buyer places a single order for identical items. Independently of the order, the buyer can also receive an additional random amount of the same item in the same time period via “transfer”. Thus, there is uncertainty associated with both the demand and the quantity that is transferred. We formulate this problem as a newsvendor problem with two independent supply streams (one deterministic and one random) and compare our analytical results for different demand distribution/transfer distribution combinations to analytical results associated with the classic newsvendor model. Uncontrolled inventory transfers present a challenging problem in the health care industry with respect to the management of blood inventory. However, the proposed extension can be generalized and applied to any situation where perishable items are transferred from satellite locations to a centralized location in order to increase the probability that the items will be sold before they expire.
Keywords: Newsvendor model; Uncontrolled transfers; Perishable inventory; Supply uncertainty (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s10479-015-2080-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:317:y:2022:i:1:d:10.1007_s10479-015-2080-5
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479
DOI: 10.1007/s10479-015-2080-5
Access Statistics for this article
Annals of Operations Research is currently edited by Endre Boros
More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().