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A Fuzzy Approach to Bi-Objective Newsboy Problem

Year 2018, Volume: 3 Issue: 2, 35 - 42, 28.10.2018

Abstract

The
single period stochastic inventory problem is referred to as ”Newsboy” or
”Newsvendor” problem in the literature, and can be expressed as determining optimal
order quantities under stochastic demand.
Due to single order opportunity, the order quantity
should be determined for the entire period. Most studies use the
expected profit as the performance measure in the solution of the Newsboy problem.
However, managers
and decision makers may be more concerned with a probability level to achieve a specific
target profit as another performance measure beside the expected profit. These two performance
measures conflict with each other, and cannot be
optimized simultaneously. Therefore, a Fuzzy
Bi-Objective Programming model has been
developed to find a good compromise solution to the problem. Two cases have been
presented to show use of the proposed model under uniform and exponential demand.

References

  • [1] B. Aytac and S. D. Wu, "Characterization of demand for short life-cycle technology products," Annals of Operations Research, vol. 203, pp. 255-277, 2013.
  • [2] S. Jahanbin, P. Goodwin, and S. Meeran, "New Product Sales Forecasting in the Mobile Phone Industry: an evaluation of current methods," International Institute of Forecasters,. 2013.
  • [3] M. Khouja, "The single-period (news-vendor) problem:literature review and suggestions for future research," Omega, vol. 27, pp. 537-553, 1999.
  • [4] G. Gallego and I. Moon, "The distribution free newsboy problem: review and extensions," Journal of the Operational Research Society, pp. 825-834, 1993.
  • [5] L. R. Weatherford and P. E. Pfeifer, "The economic value of using advance booking of orders," Omega, vol. 22, pp. 105-111, 1994.
  • [6] I. W. Kabak and A. I. Schiff, "Inventory models and management objectives," Sloan Management Review, vol. 19, pp. 53, 1978.
  • [7] W. Shih, "A general decision model for cost-volume-profit analysis under uncertainty," Accounting Review, vol. 31, pp. 687-706, 1979.
  • [8] B. E. Ismail and J. G. Louderback, "Optimizing and satisficing in stochastic cost-volume-profit analysis," Decision Sciences, vol. 10, pp. 205-217, 1979.
  • [9] H. S. Lau, "The newsboy problem under alternative optimization objectives," Journal of the Operational Research Society, vol. 31, pp. 525-535, 1980.
  • [10] H. S. Lau, "Some extensions of Ismail-Louderback’s stochastic cvp model under optimizing and satisficing criteria," Decision Sciences, vol. 11, pp. 557-561, 1980.
  • [11] R. E. Norland, "Refinements in the Ismail-Louderback stochastic cvp model," Decision Sciences, vol. 11, pp. 562-572, 1980.
  • [12] D. R. Finley and W. M. Liao, "A general decision model for cost-volume-profit analysis under uncertainty: a comment," The Accounting Review, vol. 56, pp. 400-403, 1981.
  • [13] A. H. L. Lau and H. S. Lau, "A comment on Shih’s general decision model for CVP analysis," Accounting Review, pp. 980-983, 1981.
  • [14] E. Sankarasubramanian and S. Kumaraswamy, "Note on Optimal Ordering Quantity to Realize a Pre-Determined Level of Profit," Management Science, vol. 29, pp. 512-514, 1983.
  • [15] R. B. Thakkar, D. R. Finley and W. M. Liao, "A stochastic demand CVP model with return on investment criterion," Contemporary Accounting Research, vol. 1, pp. 77-86, 1984.
  • [16] A. H. L. Lau and H. S. Lau, "Maximizing the probability of achieving a target profit in a two product newsboy problem," Decision Sciences, vol. 19, pp. 392-408, 1988.
  • [17] J. Li, H. S. Lau and A. H. L. Lau, "A two-product newsboy problem with satisficing objective and independent exponential demands," IIE transactions, vol. 23, pp. 29-39, 1991.
  • [18] C. S. Lin and D. E. Kroll, "The single-item newsboy problem with dual performance measures and quantity discounts," European Journal of Operational Research, vol. 100, pp. 562-565, 1997.
  • [19] T. M. Choi, "Handbook of newsvendor problems : models, extensions and applications.," New York ; London: Springer, 2012.
  • [20] R. E. Bellman and L. A. Zadeh, "Decision-Making In A Fuzzy Environment," Management Science, vol. 17, pp. B-141-B-164, 1970.

İki Amaçlı Gazeteci Çocuk Problemine Bulanık Bir Yaklaşım

Year 2018, Volume: 3 Issue: 2, 35 - 42, 28.10.2018

Abstract

Literatürde
“Newsboy” veya “Newsvendor” problemi olarak değinilen Tek Devrelik Stokastik
Stok Problemi (TDSSP), rassal talep altında bir ürünün en iyi sipariş miktarını
belirlemek olarak ifade edilebilir. Tek seferlik sipariş fırsatı olduğu için
bütün devrenin sipariş miktarı belirlenmelidir. Çoğu çalışmada TDSPP’nin
çözümünde beklenen kâr performans ölçüsü olarak kullanılır. Bununla birlikte
yöneticiler ve karar vericiler beklenen kâr yanında başka bir performans ölçüsü
olarak belirli bir hedef kar düzeyine ulaşma olasılığı ile daha fazla
ilgilenebilirler. Bu iki performans ölçüsü birbiriyle çatışır ve genellikle eş
anlı olarak eniyilenemez. Bu yüzden bu çalışmada probleme iyi bir uzlaşık çözüm
bulmak için bir bulanık çok amaçlı programlama modeli geliştirilmiştir. Düzgün
ve üstel dağılan talep altında önerilen modelin kullanımını göstermek için
açıklayıcı iki örnek sunulmuştur.

References

  • [1] B. Aytac and S. D. Wu, "Characterization of demand for short life-cycle technology products," Annals of Operations Research, vol. 203, pp. 255-277, 2013.
  • [2] S. Jahanbin, P. Goodwin, and S. Meeran, "New Product Sales Forecasting in the Mobile Phone Industry: an evaluation of current methods," International Institute of Forecasters,. 2013.
  • [3] M. Khouja, "The single-period (news-vendor) problem:literature review and suggestions for future research," Omega, vol. 27, pp. 537-553, 1999.
  • [4] G. Gallego and I. Moon, "The distribution free newsboy problem: review and extensions," Journal of the Operational Research Society, pp. 825-834, 1993.
  • [5] L. R. Weatherford and P. E. Pfeifer, "The economic value of using advance booking of orders," Omega, vol. 22, pp. 105-111, 1994.
  • [6] I. W. Kabak and A. I. Schiff, "Inventory models and management objectives," Sloan Management Review, vol. 19, pp. 53, 1978.
  • [7] W. Shih, "A general decision model for cost-volume-profit analysis under uncertainty," Accounting Review, vol. 31, pp. 687-706, 1979.
  • [8] B. E. Ismail and J. G. Louderback, "Optimizing and satisficing in stochastic cost-volume-profit analysis," Decision Sciences, vol. 10, pp. 205-217, 1979.
  • [9] H. S. Lau, "The newsboy problem under alternative optimization objectives," Journal of the Operational Research Society, vol. 31, pp. 525-535, 1980.
  • [10] H. S. Lau, "Some extensions of Ismail-Louderback’s stochastic cvp model under optimizing and satisficing criteria," Decision Sciences, vol. 11, pp. 557-561, 1980.
  • [11] R. E. Norland, "Refinements in the Ismail-Louderback stochastic cvp model," Decision Sciences, vol. 11, pp. 562-572, 1980.
  • [12] D. R. Finley and W. M. Liao, "A general decision model for cost-volume-profit analysis under uncertainty: a comment," The Accounting Review, vol. 56, pp. 400-403, 1981.
  • [13] A. H. L. Lau and H. S. Lau, "A comment on Shih’s general decision model for CVP analysis," Accounting Review, pp. 980-983, 1981.
  • [14] E. Sankarasubramanian and S. Kumaraswamy, "Note on Optimal Ordering Quantity to Realize a Pre-Determined Level of Profit," Management Science, vol. 29, pp. 512-514, 1983.
  • [15] R. B. Thakkar, D. R. Finley and W. M. Liao, "A stochastic demand CVP model with return on investment criterion," Contemporary Accounting Research, vol. 1, pp. 77-86, 1984.
  • [16] A. H. L. Lau and H. S. Lau, "Maximizing the probability of achieving a target profit in a two product newsboy problem," Decision Sciences, vol. 19, pp. 392-408, 1988.
  • [17] J. Li, H. S. Lau and A. H. L. Lau, "A two-product newsboy problem with satisficing objective and independent exponential demands," IIE transactions, vol. 23, pp. 29-39, 1991.
  • [18] C. S. Lin and D. E. Kroll, "The single-item newsboy problem with dual performance measures and quantity discounts," European Journal of Operational Research, vol. 100, pp. 562-565, 1997.
  • [19] T. M. Choi, "Handbook of newsvendor problems : models, extensions and applications.," New York ; London: Springer, 2012.
  • [20] R. E. Bellman and L. A. Zadeh, "Decision-Making In A Fuzzy Environment," Management Science, vol. 17, pp. B-141-B-164, 1970.
There are 20 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Ahmet Öğütlü 0000-0003-1634-0600

Servet Hasgül

Publication Date October 28, 2018
Submission Date August 27, 2018
Acceptance Date October 25, 2018
Published in Issue Year 2018 Volume: 3 Issue: 2

Cite

APA Öğütlü, A., & Hasgül, S. (2018). A Fuzzy Approach to Bi-Objective Newsboy Problem. Harran Üniversitesi Mühendislik Dergisi, 3(2), 35-42.