An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand
In industrial and commercial settings, inventory systems often involve managing multiple products with diverse demand patterns, making the direct application of the single-item newsvendor model inefficient. To address this complexity, this study proposes an adaptation of the newsvendor model through...
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| Format: | Article |
| Language: | English |
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Iran University of Science & Technology
2024-12-01
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| Series: | International Journal of Industrial Engineering and Production Research |
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| Online Access: | http://ijiepr.iust.ac.ir/article-1-2097-en.pdf |
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| author | Dwi Kurniawan Aghnia Nazhiifah Ulhaq Aditya Fadhilah Althofian Rubby Nur Rachman |
| author_facet | Dwi Kurniawan Aghnia Nazhiifah Ulhaq Aditya Fadhilah Althofian Rubby Nur Rachman |
| author_sort | Dwi Kurniawan |
| collection | DOAJ |
| description | In industrial and commercial settings, inventory systems often involve managing multiple products with diverse demand patterns, making the direct application of the single-item newsvendor model inefficient. To address this complexity, this study proposes an adaptation of the newsvendor model through demand aggregation, where related items are grouped into a product family. By aggregating demand and financial parameters, the traditional newsvendor approach can be extended to multi-item systems, simplifying the inventory management process. This method was tested in two different case studies—a coffee roaster company and a meatball producer—demonstrating its validity and applicability. The aggregated newsvendor model was found to enhance inventory accuracy and efficiency, reducing random error and improving operational performance. This approach offers a valuable extension of the newsvendor model, with potential for broader application across various industries. |
| format | Article |
| id | doaj-art-63d7a6c29a2a4b93bdbbf88bb9091a58 |
| institution | OA Journals |
| issn | 2008-4889 2345-363X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Iran University of Science & Technology |
| record_format | Article |
| series | International Journal of Industrial Engineering and Production Research |
| spelling | doaj-art-63d7a6c29a2a4b93bdbbf88bb9091a582025-08-20T02:23:08ZengIran University of Science & TechnologyInternational Journal of Industrial Engineering and Production Research2008-48892345-363X2024-12-013542941An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain DemandDwi Kurniawan0Aghnia Nazhiifah Ulhaq1Aditya Fadhilah Althofian2Rubby Nur Rachman3 Institut Teknologi Nasional Bandung- Indonesia Institut Teknologi Nasional, Bandung 40124, Indonesia Institut Teknologi Nasional, Bandung 40124, Indonesia Institut Teknologi Nasional, Bandung 40124, Indonesia In industrial and commercial settings, inventory systems often involve managing multiple products with diverse demand patterns, making the direct application of the single-item newsvendor model inefficient. To address this complexity, this study proposes an adaptation of the newsvendor model through demand aggregation, where related items are grouped into a product family. By aggregating demand and financial parameters, the traditional newsvendor approach can be extended to multi-item systems, simplifying the inventory management process. This method was tested in two different case studies—a coffee roaster company and a meatball producer—demonstrating its validity and applicability. The aggregated newsvendor model was found to enhance inventory accuracy and efficiency, reducing random error and improving operational performance. This approach offers a valuable extension of the newsvendor model, with potential for broader application across various industries.http://ijiepr.iust.ac.ir/article-1-2097-en.pdfprobabilistic inventory systemuncertain demandnewsvendor modelexpected profit |
| spellingShingle | Dwi Kurniawan Aghnia Nazhiifah Ulhaq Aditya Fadhilah Althofian Rubby Nur Rachman An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand International Journal of Industrial Engineering and Production Research probabilistic inventory system uncertain demand newsvendor model expected profit |
| title | An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand |
| title_full | An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand |
| title_fullStr | An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand |
| title_full_unstemmed | An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand |
| title_short | An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand |
| title_sort | aggregated newsvendor model for multi item perishable inventories with uncertain demand |
| topic | probabilistic inventory system uncertain demand newsvendor model expected profit |
| url | http://ijiepr.iust.ac.ir/article-1-2097-en.pdf |
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