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An effective procedure for the distribution of magazines
Author(s) -
Artto K.A.,
Pylkkänen E.
Publication year - 1999
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/j.1475-3995.1999.tb00157.x
Subject(s) - stockout , econometrics , computer science , distribution (mathematics) , economics , supply and demand , connection (principal bundle) , operations research , microeconomics , operations management , mathematics , mathematical analysis , geometry
The article provides theoretical and empirical findings on developing an effective procedure for magazine single copy distribution. Considerations of determinants of demand are provided, emphasizing the importance of price and seasonality. A relative adjustment formula for stockout corrections is introduced, applicable in connection with normally distributed demand. The main contribution is a new demand forecasting and supply decision model, taking explicitly into account price and seasonality. The applicability and potential economic benefits are shown by giving results from an extensive empirical test in the Finnish single copy market.