| Article ID: | iaor20081605 |
| Country: | China |
| Volume: | 29 |
| Issue: | 4 |
| Start Page Number: | 503 |
| End Page Number: | 505 |
| Publication Date: | Apr 2006 |
| Journal: | Journal of Hefei University of Technology |
| Authors: | Yang Shanlin, Yang Zhilin, Chen Guoqi |
| Keywords: | newsboy problem |
It is very common in practical life that two kinds of products substitute for each other, so it is meaningful to discuss the inventory problem in which multiple items can substitute for each other. In this paper, a two-item newsboy inventory problem with substitutability is discussed. Suppose the two kinds of products are consumed, when one is in storage and the other is in shortage, then the substitution of one for the other occurs. A mathematical model of this newsboy inventory problem considering the total cost is developed, application examples are presented, and the optimal numerical solution and sensitivity analysis of substitutive parameters are given.