Article ID: | iaor20073203 |
Country: | Canada |
Volume: | 44 |
Issue: | 1 |
Start Page Number: | 19 |
End Page Number: | 22 |
Publication Date: | Feb 2006 |
Journal: | INFOR |
Authors: | Hojati Mehran |
Keywords: | newsboy problem |
A few articles have been written on the determination of the order quantity in a one-period inventory problem (the Newsboy's problem) when the quantity to be received is also uncertain (in addition to the period's demand). At least three articles have derived and used formulas for the case when demand is uniform. In this note, I will show a flaw in this formula and explain the reason for it. In addition, I will provide an analytical solution to the problem when supply reliability is uniform.