Document Type : Original Article

Authors

Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran.

Abstract

Purpose: The newsboy problem is one of the most widely used and important models in the field of inventory control. In fact, there are many industries whose products fall into the category of newosboy problem, such as seasonal goods, food products. But in practice there are more restrictions than the assumptions of the newsboy problem. In this article has tried, in order to make the problem more in line with the real world some limitations during production, such as outsourcing mode, capacity limit and returned goods, have been added to the problem.
Methodology: This research is based on library studies and the development of mathematical modeling.
Findings: In the newsboy problem, there are important parameters such as outsourcing, capacity constraints and product referral which in this study, the effect of each of these parameters on profitability has been evaluated.
Originality/Value: Development of the newsboy problem in terms of outsourcing and returned products and capacity constraints.

Keywords

Main Subjects

[1]        HajShirmohammadi, A. (2019). The book of principles of planning and control of production and inventories. The pillars of knowledge. (In Persian). https://www.gisoom.com/book/11048032/
[2]     Lee, G., Shin, G., Hwang, D. W., Kuper, P., & Kang, M. (2018). How manufacturers’ long-term orientation toward suppliers influences outsourcing performance. Industrial marketing management, 74, 288–297. DOI:https://doi.org/10.1016/j.indmarman.2018.07.003
[3]    Shen, B., & Li, Q. (2015). Impacts of returning unsold products in retail outsourcing fashion supply chain: a sustainability analysis. Sustainability, 7(2), 1172–1185.
[4]      Khouja, M. (1995). The newsboy problem under progressive multiple discounts. European journal of operational research, 84(2), 458–466.
[5]     Chen, L. H., & Chen, Y. C. (2009). A newsboy problem with a simple reservation arrangement. Computers and industrial engineering, 56(1), 157–160. DOI:https://doi.org/10.1016/j.cie.2008.04.010
[6]      Chen, L. H., & Chen, Y. C. (2010). A multiple-item budget-constraint newsboy problem with a reservation policy.  Omega, 38(6), 431–439. DOI:https://doi.org/10.1016/j.omega.2009.10.007
[7]     Lau, H. S., & Hing Ling Lau, A. (1996). The newsstand problem: a capacitated multiple-product single-period inventory problem. European journal of operational research, 94(1), 29–42. DOI:https://doi.org/10.1016/0377-2217(95)00192-1
[8]     Vairaktarakis, G. L. (2000). Robust multi-item newsboy models with a budget constraint. International journal of production economics, 66(3), 213–226. DOI:https://doi.org/10.1016/S0925-5273(99)00129-2
[9]     Abdel-Malek, L., Montanari, R., & Morales, L. C. (2004). Exact, approximate, and generic iterative models for the multi-product Newsboy problem with budget constraint. International journal of production economics, 91(2), 189–198. DOI:https://doi.org/10.1016/j.ijpe.2003.09.004
[10]   Zhang, B., Xu, X., & Hua, Z. (2009). A binary solution method for the multi-product newsboy problem with budget constraint. International journal of production economics, 117(1), 136–141. DOI:https://doi.org/10.1016/j.ijpe.2008.10.003
[11]    Zhang, B., & Du, S. (2010). Multi-product newsboy problem with limited capacity and outsourcing. European journal of operational research, 202(1), 107–113. DOI:https://doi.org/10.1016/j.ejor.2009.04.017
[12]   Wei, C., Li, Y., & Cai, X. (2011). Robust optimal policies of production and inventory with uncertain returns and demand. International journal of production economics, 134(2), 357–367. DOI:https://doi.org/10.1016/j.ijpe.2009.11.008
[13]    Mostard, J., de Koster, R., & Teunter, R. (2005). The distribution-free newsboy problem with resalable returns. International journal of production economics, 97(3), 329–342. DOI:https://doi.org/10.1016/j.ijpe.2004.09.003
[14]    Adhikary, K., Roy, J., & Kar, S. (2019). Newsboy problem with birandom demand. Decision making: applications in management and engineering, 2(1), 1–12.
[15]    Mashud, A. H. M., Wee, H. M., Huang, C. V., & Wu, J. Z. (2020). Optimal replenishment policy for deteriorating products in a newsboy problem with multiple just-in-time deliveries. Mathematics, 8(11), 1981. https://doi.org/10.3390/math8111981
[16]   Ota, M., Srinivasan, S., & Nandakumar, C. D. (2021). Economic ordering model for multiple items with stochastic demand and budget constraint. International journal of services and operations management, 38(1), 1–21. DOI:10.1504/IJSOM.2021.112515
[17]   Adhikary, K., Roy, J., & Kar, S. (2020). Fuzzy random Newsboy problem with chance distribution. Journal of intelligent and fuzzy systems, 39(5), 6857–6868.
[18]    Karbasi Bonab, V., Yousefi Nejad Attari, M., & Neishabouri, E. (2018). Presenting a bi-objective vendor managed inventory model with fuzzy demand for multiple vendor. Journal of decisions and operations research, 2(2), 147–168. DOI:10.22105/dmor.2018.57316