Fuzzy random Newsboy problem with chance distribution

Due to increasing difficulty and challenging issues of newsboy problem under uncertainty, managers seek newer and appropriate approaches to apprehend more accurately the demand for perishable products and or the products having a short shelf life. This paper investigates a newsboy problem with fuzzy random demand in a single product business scenario. The classical newsboy model is extended to a fuzzy random newsboy problem to determine the optimal order quantity and expected profit under hybrid uncertainty. To solve the proposed model, a new solution approach based on chance constraint programming is proposed to formulate the crisp equivalent form of the fuzzy random newsboy model. Numerical examples and a real-life case study are presented to show the utility of the projected model. From the outcomes, decision makers can make comprehensive recommendations for the optimal order quantity and expected profit obtained by our proposed model under two-folded uncertainty. Also, a sensitivity analysis suggests that the profit and order quantity will increase (or decrease) with the increase (or decrease) of the mean demand.

Optimal Replenishment Policy for Deteriorating Products in a Newsboy Problem with Multiple Just-in-Time Deliveries

Product deterioration is a common phenomenon and is overlooked in most contemporary research on the newsboy problem. In this study, we have considered product deterioration in a production–inventory newsboy model based on multiple just-in-time (JIT) deliveries. This model is solved by a classical optimization technique for the manufacturer production size, wholesale price, replenishment plan, and retailer order policy using a distribution-free approach. Moreover, in order to improve business and entice more customers, a return policy and a post-sale warranty policy is adopted in the model. Theoretical development and numerical examples are provided to demonstrate the validity of this approach.

One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint

One-way substitution means that when low-end brand goods are sold out, high-end brand goods can be offered to consumers as substitute goods, but not the opposite. In realistic economic activity, “shortage of funds” is a common practical problem for the retailer in making order decision. This paper proposes a nonlinear optimization model with the retailer’s budget to study the optimal order quantities and substitution discount for two one-way substitution products under a stochastic demand scenario, and the objective is to maximize the retailer’s revenue. We solve the model mainly according to the Karush–Kuhn–Tucker (KKT) theorem and present the conditions of optimal decisions. Finally, through the numerical study, we analyze the influence of the budget constraint and other parameters on the optimal solutions.

Optimisasi Jumlah Produksi Menggunakan Model Newsboy dan Perencanaan Pengendalian Bahan Baku Menggunakan Material Requirement Planning (MRP)

A company have to do inventory control for available guarantying of material, component or item at the time to fulfill production schedule, and available guarantying of product become to consumer and take care of inventory at minimum condition. As object of research is CV. Cita Nasional located in Salatiga. Problems that exist in the CV. Cita Nasional often experience shortages of raw materials caused by internal and external factors. The approach taken to solve this problem by making a production plan using the Newsboy Problem because milk products including perishable product and raw material inventory planning (MRP). From the calculation results obtained the company must produce optimal demand every Monday to Sunday. While the raw material inventory plan using Economic Order Quantity (EOQ) method. Company decreased cost for fresh milk amounting to Rp.35.526.780 and decreased raw material expense cost for whey powder amounting to Rp. 22.573.650.