Article ID: | iaor1999564 |
Country: | United Kingdom |
Volume: | 48 |
Issue: | 12 |
Start Page Number: | 1245 |
End Page Number: | 1253 |
Publication Date: | Dec 1997 |
Journal: | Journal of the Operational Research Society |
Authors: | Lau Hon-Shiang, Lau Amy Hing-Ling |
Keywords: | newsboy problem |
This paper is an exploratory study of a very common variation of the classical newsboy problem: in addition to the supply at the beginning of the sales period, an additional replenishment opportunity exists sometime during the sales period. A basic model for the problem is presented and a semi-analytical solution procedure is developed. Numerical solutions obtained reveal certain interesting properties of the model. The paper shows that the replenishment extension makes the newsboy problem much more challenging managerially and also that it can be practically solved with significant profit implications.