A MULTI-PERIOD NEWSVENDOR PROBLEM WITH PRE-SEASON EXTENSION UNDER FUZZY DEMAND
JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, vol.11, no.4, pp.613-629, 2010 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 11 Issue: 4
- Publication Date: 2010
- Doi Number: 10.3846/jbem.2010.30
- Journal Name: JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
- Page Numbers: pp.613-629
- Open Archive Collection: AVESIS Open Access Collection
- Erciyes University Affiliated: No
Abstract
This paper proposes a fuzzy multi-period newsvendor model with pre-season extension for innovative products. The demand of the product is represented by fuzzy numbers with triangular membership function. The holding and shortage cost parameters are considered as imprecise and also represented by triangular fuzzy numbers. As the selling season draws closer, suppliers lead times shortens and thus production costs increase. In contrast, caused by the oncoming selling season, demand fuzziness decreases and more accurate demand forecasts can be maintained that lead to lower overage/underage costs. The objective of the model is to find the best order period and the best order quantity that will minimize the fuzzy expected total cost. The model is experimented with an illustrative example and supported by sensitivity analyses.