Using system simulation to search for the optimal multi-ordering policy for perishable goods
This paper explores the possibility that perishable goods can be ordered several times in a single period after considering the cost of Marginal contribution, Marginal loss, Shortage, and Purchasing under stochastic demand. In order to determine the optimal ordering quantity to improve the tradition...
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| Format: | Article |
| Language: | English |
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Universitat Politècnica de València
2019-01-01
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| Series: | International Journal of Production Management and Engineering |
| Subjects: | |
| Online Access: | https://polipapers.upv.es/index.php/IJPME/article/view/10745 |
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| _version_ | 1850089137254694912 |
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| author | Y.C. Huang X.Y. Chang Y.A. Ding |
| author_facet | Y.C. Huang X.Y. Chang Y.A. Ding |
| author_sort | Y.C. Huang |
| collection | DOAJ |
| description | This paper explores the possibility that perishable goods can be ordered several times in a single period after considering the cost of Marginal contribution, Marginal loss, Shortage, and Purchasing under stochastic demand. In order to determine the optimal ordering quantity to improve the traditional newsvendor and maximize the total expected profits, and then sensitivity analysis is taken to realize the influence of the parameters on total expected profits and decision variables respectively. In addition, this paper designed a multi-order computerized system with Monte Carlo method to solve the optimal solution under stochastic demand. Based on numerical examples, this paper verified the feasibility and efficiency of the proposed model. Finally, several specific conclusions are drawn for practical applications and future studies. |
| format | Article |
| id | doaj-art-9cd865f5927d4dae810703e070f17963 |
| institution | DOAJ |
| issn | 2340-4876 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Universitat Politècnica de València |
| record_format | Article |
| series | International Journal of Production Management and Engineering |
| spelling | doaj-art-9cd865f5927d4dae810703e070f179632025-08-20T02:42:52ZengUniversitat Politècnica de ValènciaInternational Journal of Production Management and Engineering2340-48762019-01-0171496210.4995/ijpme.2019.107457293Using system simulation to search for the optimal multi-ordering policy for perishable goodsY.C. Huang0X.Y. Chang1Y.A. Ding2National Pingtung University of Science and TechnologyNational Pingtung University of Science and TechnologyNational Pingtung University of Science and TechnologyThis paper explores the possibility that perishable goods can be ordered several times in a single period after considering the cost of Marginal contribution, Marginal loss, Shortage, and Purchasing under stochastic demand. In order to determine the optimal ordering quantity to improve the traditional newsvendor and maximize the total expected profits, and then sensitivity analysis is taken to realize the influence of the parameters on total expected profits and decision variables respectively. In addition, this paper designed a multi-order computerized system with Monte Carlo method to solve the optimal solution under stochastic demand. Based on numerical examples, this paper verified the feasibility and efficiency of the proposed model. Finally, several specific conclusions are drawn for practical applications and future studies.https://polipapers.upv.es/index.php/IJPME/article/view/10745Perishable goodsSingle-periodMulti-orderingNewsvendor modelMonte Carlo method |
| spellingShingle | Y.C. Huang X.Y. Chang Y.A. Ding Using system simulation to search for the optimal multi-ordering policy for perishable goods International Journal of Production Management and Engineering Perishable goods Single-period Multi-ordering Newsvendor model Monte Carlo method |
| title | Using system simulation to search for the optimal multi-ordering policy for perishable goods |
| title_full | Using system simulation to search for the optimal multi-ordering policy for perishable goods |
| title_fullStr | Using system simulation to search for the optimal multi-ordering policy for perishable goods |
| title_full_unstemmed | Using system simulation to search for the optimal multi-ordering policy for perishable goods |
| title_short | Using system simulation to search for the optimal multi-ordering policy for perishable goods |
| title_sort | using system simulation to search for the optimal multi ordering policy for perishable goods |
| topic | Perishable goods Single-period Multi-ordering Newsvendor model Monte Carlo method |
| url | https://polipapers.upv.es/index.php/IJPME/article/view/10745 |
| work_keys_str_mv | AT ychuang usingsystemsimulationtosearchfortheoptimalmultiorderingpolicyforperishablegoods AT xychang usingsystemsimulationtosearchfortheoptimalmultiorderingpolicyforperishablegoods AT yading usingsystemsimulationtosearchfortheoptimalmultiorderingpolicyforperishablegoods |