| Article ID: | iaor201112765 |
| Volume: | 58 |
| Issue: | 5 |
| Start Page Number: | 490 |
| End Page Number: | 506 |
| Publication Date: | Aug 2011 |
| Journal: | Naval Research Logistics (NRL) |
| Authors: | Wu Andy Wei-Di, Chiang David Ming-Huang |
| Keywords: | simulation, combinatorial optimization, supply & supply chains, stochastic processes, programming: dynamic, decision, programming: probabilistic |
In this study, we explore an inventory model for a wholesaler who sells a fashion product through two channels with asymmetric sales horizons. The wholesaler can improve profitability by employing joint procurement and inventory reallocation as a recourse action in response to the dynamics of sales. In this research, a simple stochastic programming model is analyzed to specify the properties of the optimal inventory decisions.