n South African Journal of Industrial Engineering - The robust min-max newsvendor problem with balking under a service level constraint




In this paper we study an extension of a classic newsvendor model with balking under a service-level constraint. We also relax the assumption that the demand distribution is fully available to a decision-maker; we assume that only the mean and variance of the demand distribution are known, and discuss the procedure for determining the optimal order quantity for the concomitant model. We further extend our base model to two different cases: (i) when the fixed ordering cost is included, and (ii) when yield is uncertain. We illustrate the solution procedures for each case with numerical examples. Moreover, we discuss the performance and robustness of the approach through randomly generated test instances, and perform a numerical sensitivity analysis to evaluate the impact of the changes of a targeted fill-rate and variances of a demand distribution.

Die navorsing handel oor uitbreiding van die klassieke koerantverkoopsmodel met weiering teen die agtergrond van 'n diensrandvoorwaarde en bekende gemiddelde en variansie van vraag. Die bogenoemde uitbreiding sluit ook as alternatief die bestelkoste vir onsekere vraag in. Die modelprestasie word gedemonstreer via 'n reeks van syfervoorbeelde.


Article metrics loading...

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error