| 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.