|
|||||
|
|
Inventory control problem with freight cost and stochastic demand |
|
| Authors: | Ju-liang Zhang Chung-Yee Lee Jian Chen |
| Affiliation: | aDepartment of Logistics Management, School of Economics and Management, Beijing Jiaotong University, Beijing, 100044, China;bDepartment of Industrial Engineering and Logistics Management, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;cDepartment of Management Science and Engineering, School of Economics and Management, Tsinghua University, Beijing, 100084, China |
| Abstract: | This paper generalizes the standard newsboy model to the case including freight cost, in which the capacity of one container is the limit and the freight cost is proportional to the number of the containers used. We show that the optimal ordering quantity is either the newsboy solution or some multiple of the container’s capacity. We also propose an algorithm to compute the optimal policy. Furthermore, we generalize these results to the case in which the inventory and the price are determined jointly with emergency purchase. |
| Keywords: | Stochastic inventory management Freight cost Newsboy problem Pricing |
| 本文献已被 ScienceDirect 等数据库收录！ | |