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AN AGGREGATED NEWSVENDOR MODEL FOR MULTI-ITEM PERISHABLE INVENTORIES WITH UNCERTAIN DEMAND
Dwi Kurniawan
Institut Teknologi Nasional Bandung- Indonesia , dwi_kurniawan@itenas.ac.id
Abstract:   (136 Views)
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.
Keywords: Probabilistic inventory system, uncertain demand, Newsvendor model, expected profit
     
Type of Study: Research | Subject: Material Managment
Received: 2024/08/24 | Accepted: 2024/09/30
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Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.