A Concurrent Newsvendor Problem with Rationing
The model proposed in this paper aims at identifying the best allocation of a limited quantity of product to a group of retailers supplied by a unique supplier, considering the variability of the demands faced on the market. The proposed approach aims at reducing the problem of demand inflation, inherent to many rationing policies, by considering the mean and the standard deviation of the demand faced by each retailer. Moreover it could provide managerial insights for managing concurrent retailers under availability constraints.
KeywordsNewsvendor problem rationing probabilistic demand stock allocation inventory management
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