Title :
Study on the optimal ordering strategy of Short Lifecycle Products based on stochastic demand
Author :
Hu, Lingbing ; Zhang, Baoyin ; Jie Zhang
Author_Institution :
Sch. of Manage., Tianjin Univ., Tianjin, China
Abstract :
For the characteristic of short storage life and quick value decay for Short Lifecycle Products (SLPs), it is supposed that suppliers provide Quantity Discount Pricing (QDP), lead time and demand rate comply with stochastic normal distributions, and stock-outs are permitted. And the optimal ordering models of SLPs were developed for discrete and continuous stochastic demand. Then the arguments analysis received the important reference results. In addition the algorithm procedure and numerical value example were provided to figure out the optimal order quantity and safe stock.
Keywords :
pricing; stochastic processes; stock control; supply and demand; continuous stochastic demand; discrete demand; optimal ordering models; quantity discount pricing; quick value decay; safe stock; short lifecycle products; short storage life; stochastic normal distributions; Analytical models; Biological system modeling; Equations; Mathematical model; Numerical models; Pricing; Stochastic processes; lead time; quantity discount pricing (QDP); safe stock; short lifecycle products (SLPs); stochastic demand;
Conference_Titel :
Management Science and Industrial Engineering (MSIE), 2011 International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-1-4244-8383-9
DOI :
10.1109/MSIE.2011.5707692
