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Please use this identifier to cite or link to this item: http://dspace.library.iitb.ac.in/jspui/handle/10054/6676

Title: Incorporating one-way substitution policy into the newsboy problem with imprecise customer demand
Authors: DUTTA, P
CHAKRABORTY, D
Keywords: period inventory model
product substitution
fuzzy demand
single
constraint
systems
Issue Date: 2010
Publisher: ELSEVIER SCIENCE BV
Citation: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 200(1), 99-110
Abstract: This paper presents an approach for solving an inventory model for single-period products with maximizing its expected profit in a fuzzy environment, in which the retailer has the opportunity for substitution. Though various structures of substitution arise in real life, in this study we consider the fuzzy model for two-item with one-way substitution policy. This one-way substitutability is reasonable when the products can be stored according to certain attribute levels such as quality, brand or package size. Again, to describe uncertainty usually probability density functions are being used. However, there are many situations in real world that utilize knowledge-based information to describe the uncertainty. The objective of this study is to provide an analysis of single-period inventory model in a fuzzy environment that enables us to compute the expected resultant profit under substitution. An efficient numerical search procedure is provided to identify the optimal order quantities, in which the utilization of imprecise demand and the use of one-way substitution policy increase the average expected profit. The benefit of product substitution is illustrated through numerical example. (C) 2008
URI: http://dx.doi.org/10.1016/j.ejor.2008.12.011
http://dspace.library.iitb.ac.in/xmlui/handle/10054/6676
http://hdl.handle.net/10054/6676
ISSN: 0377-2217
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