Self-Adaptive Newsvendor Model with Information Updated

The use of classical newsvendor model is limited by assumptions and prior probability statistics. Self-adaptive newsvendor model is proposed to divide the sales interval and automatically adjust the differential according to the sales information collected by retailer’s information system. Demand in...

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Bibliographic Details
Published in:Procedia computer science 2019-01, Vol.154, p.89-95
Main Authors: Zhang, Ge-Fu, Hu, Zhao-Hui, Wang, Wen-Qi
Format: Article
Language:English
Subjects:
Assisted ordering decisions
Information Systems
Newsvendor model
Self-adaptive
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Summary:The use of classical newsvendor model is limited by assumptions and prior probability statistics. Self-adaptive newsvendor model is proposed to divide the sales interval and automatically adjust the differential according to the sales information collected by retailer’s information system. Demand interval and its corresponding demand probability value could be adjusted timely to correct the next order prediction quantity. Based on management information system, model calculation tool is designed to improve the feasibility of the model application. Compared to traditional newsvendor model, self-adaptive newsvendor model can effectively meet the needs of short-period, small-quantity, multi-batch products purchasing.
ISSN:1877-0509
1877-0509
DOI:10.1016/j.procs.2019.06.014