Unreliable newsboy problem with a forecast update

Document Type

Article

Publication Title

Operations Research Letters

Abstract

In this paper, we derive an optimal ordering policy for an unreliable newsboy who can place two sequential orders before the start of a single selling season by using a demand forecast update. Supply yield is modeled using a uniform distribution considering both the minimum order guarantee and the maximum yield. Our results indicate that a firm should focus on increasing the minimum order guarantee from a first stage supplier to reduce its total supply chain cost.

Publication Date

1-4-2011

Publisher

Elsevier

Volume

Vol.39

Issue

Iss.4

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