The multi-product newsboy problem with service level constraint
Service level plays an essential role in inventory management due to the fierce competition. In this paper, a multiproduct newsboy problem model with service level constraint is developed. The aim is to maximize the expected profit of the inventory system which satisfy a given total service level. The existence and uniqueness of the optimal solution are discussed and, using bisection approach, the method for finding optimal strategy is proposed. Numerical examples show the effectiveness of the model and the algorithm. Sensitivity analysis is provided for reflecting the relationship between service level and expected profit, which leads to managerial insights about inventory management.
multi-productnewsboyproblem(MPNP) servicelevel bisectionapproach KKTcondition
Mo Jiangtao Fan Ting Chen Guimei Mao Hong
College of Mathematics and Information Sciences, Guangxi University, Nanning, Guangxi, 530004, China
国际会议
广州
英文
1-4
2011-05-13（万方平台首次上网日期，不代表论文的发表时间）