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Two-stage newsboy model with backoreder and initial inventory

Author

Listed:
  • Zied Jemai

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Ali Cheaitou

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Christian van Delft

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Yves Dallery

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

Abstract

In this paper, we develop a general two-stage newsboy model. Each period decision induces specific costs. In addition to the usual decision variables for such models, we consider that, at the beginning of the decision process, an initial inventory is available and some preliminary fixed orders are to be delivered at each period. The unsatisfied demands during a period are backlogged to be satisfied in the future. The model is solved by a dynamic programming approach. We then provide insight regarding this type of two-stage inventory decision process with the help of numerical examples.

Suggested Citation

  • Zied Jemai & Ali Cheaitou & Christian van Delft & Yves Dallery, 2006. "Two-stage newsboy model with backoreder and initial inventory," Post-Print hal-01672453, HAL.
    • Handle: RePEc:hal:journl:hal-01672453
    as

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