Flashcards
newspaper vendor model
Cards in this deck (20)
- 1characteristicsperishable
single replenishment - 2terminologyW - wholesale price
S- salvage price
R -retail price
Q - economic order quantity - 3cost of overstockW-S
- 4Cost of understockR-W
- 5P(D<=Q)Cu
_________
(Co + Cu) - 6IdentitiesDemand = sales + lost sales ;
lost sales = 0 , D < Q*
lost sales > 0 , D>Q*
Order quantity = Sales + Left over Inventory - 7how to compute Lost sales?Let 'x' be the demand :
f(x) - probability density function defining the demand:
Lost sales =
Integral (x-Q*) *f(x)dx;
limits : Q*--> Infinity - 8what is Expected demand?Mean value of the demand
- 9what is safety stock requiredstandard deviation of demand
- 10if demand is normal, what is expected- lost salesExpected - Lost Sales = sigma * L(z)
where,
z = Q*-Mu
_____
sigma - 11what is expected profit(R-W) * E(Sales) -
(W-S)*E(Left-over Inventory) - 12expected profitMaximum profit - mismatch cost
(R-W)*E(D) -
E [ (R-W)*Max(D-Q,0) +
(W-S)*Max(Q-D,0) ] - 13what is impact of improved forecasts?sigma - down
E(profit) - up - 14Performance measures in News-Vendor modelE(lost-sales)
E(Sales)
E(left-over inventory)
E(Profit)
In-stock probability - P(D<=Q)
E(fill-rate) = E(sales)/E(Demand) - 15what is fill ratefill rate is the fraction of customer demand that is met through immediate stock availability, without backorders or lost sales.
Fill rate = Expected [min(B,D)/D]
B = Inventory Level - 16What is cycle service level?no of cycle (week/month) with no stock out
_____________________________
Total number of months - 17Multi-item news vendor modelwhen you have limited shelf life, which items to display?
say capacity of shelf = 1;
do incremental analysis to compute expected marginal profit;
display the item with highest, expected marginal profit - 18Expected Marginal profit(Ri-Wi)*p(D>Q*) + (Si-Wi)*p(D<=Q)
- 19What happens at the end on a Multi-item newsvendor modelAll quantities that positive order quantity have similar marginal profit
- 20What if retail price, cost and salvage value are equal for all 3 itemsnot only marginal profit is identical, probability of stock-out also identical
Information
- Description
- Supply Chain Managment Flashcards on newspaper vendor model, created by Mukundhan Srinivasan on 26/09/2016.
- Created by
- Mukundhan Srinivasan
- Views
- 0
- Rating