An Aggregated Newsvendor Model for Multi-Item Perishable Inventories with Uncertain Demand

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Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:

In industrial and commercial settings, inventory systems often involve managing multiple products with diverse demand patterns, making the direct application of the single-item newsvendor model inefficient. To address this complexity, this study proposes an adaptation of the newsvendor model through demand aggregation, where related items are grouped into a product family. By aggregating demand and financial parameters, the traditional newsvendor approach can be extended to multi-item systems, simplifying the inventory management process. This method was tested in two different case studies—a coffee roaster company and a meatball producer—demonstrating its validity and applicability. The aggregated newsvendor model was found to enhance inventory accuracy and efficiency, reducing random error and improving operational performance. This approach offers a valuable extension of the newsvendor model, with potential for broader application across various industries.

Language:
English
Published:
International Journal of Industrial Engineering and Productional Research, Volume:35 Issue: 4, Dec 2024
Pages:
29 to 41
https://www.magiran.com/p2793268