Open AccessSimplified Analysis of a Multiproduct Newsboy Problem Using Simulation
Author(s) -
J. Vijayarangam,
B. Navin Kumar,
Anupama Vasudevan,
Pandiyarajan
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/988/1/012089
Subject(s) - newsvendor model , product (mathematics) , computer science , domain (mathematical analysis) , operations research , monte carlo method , newspaper , business , mathematics , supply chain , advertising , marketing , statistics , mathematical analysis , geometry
A newsboy problem is a specialized form of a general inventory problem which discusses the decision making skill of a trader, a retailer to be specific, who is facing uncertainty in the form of the demand of one or more perishable products. The lifetime of a perishable product depends on the domain. Products like newspapers, flowers are single day products as they are invalid or less useful after one day. Products like vegetables, fruits may be considered for two or three days depending on the storage procedure employed. So, the retailer has to dispense off the products within their lifetime, either by selling it or by salvaging it. This has been one of the most interesting and sought after problem for discussion as it provides with a simplistic platform to start the discussionsand hence the literature is huge for such problems. It has been analyzed using very many avenues in the literature. This paper discusses the problem of the retailer, dealing in two perishable products using Monte Carlo Simulation and compare its efficiency with standard theoretical Fractile method.