Article ID: | iaor20022115 |
Country: | Netherlands |
Volume: | 73 |
Issue: | 3 |
Start Page Number: | 241 |
End Page Number: | 249 |
Publication Date: | Jan 2001 |
Journal: | International Journal of Production Economics |
Authors: | Chang Sheng-Lin, Chou Shuo-Yan |
Keywords: | newsboy problem |
Traditional analysis for determining inventory levels assumes constant or normally distributed demand over the period of analysis, which is not suitable for products of short life-cycles as commonly found in fashion-related products. This paper utilizes a logistic growth function and a logistic substitution function to model the growth, saturation, and decline of such products with varying yet dependent demands. A heuristic that finds the minimum cost single-order multiple deliveries schedule for the logistic demand is developed to facilitate the use of the logistic model.