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

Author

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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)

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.

Suggested Citation

  • Chun-Chin Wei & Liang-Tu Chen, 2021. "Supply Chain Replenishment Decision for Newsvendor Products with Multiple Periods and a Short Life Cycle," Sustainability, MDPI, vol. 13(22), pages 1-13, November.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12777-:d:682366
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    References listed on IDEAS

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