To read this content please select one of the options below:

Multiobjective Newsvendor Models with CVaR for Flower Industry

ISBN: 978-1-83867-001-6, eISBN: 978-1-83867-000-9

Publication date: 11 September 2020

Abstract

The newsvendor problem is fundamental to many operations management models. The problem focuses on the trade-off between the gains from satisfying demand and losses from unsold products. The newsvendor model and its extensions have been applied to various areas, such as production plan and supply chain management. This chapter examines the study about newsvendor problem. In this research, there is a review of the contributions for the multiproduct newsvendor problem. It focuses on the current literature concerning the mathematical models and the solution methods for the multiitem newsvendor problems with single or multiple constraints, as well as with the risks. The objective of this research is to go over the newsvendor problem and bring into comparison different newsvendor models applied to the flower industry. A few case studies are described addressing topics related to the newsvendor problem such as discounting and replenishment policies, inventory inaccuracies, or demand estimation. Three newsvendor models are put into practice in the field of flower selling. A full database of the flowers sold by an anonymous retailer is available for the study. Computational experiments for practical example have been conducted with use of the CPLEX solver with AMPL programming language. Models are solved, and an analysis of different circumstances and cases is accomplished.

Keywords

Acknowledgements

Acknowledgments

This research was partly supported by AGH subsidy for maintenance and development of the research potential. The author is grateful to anonymous reviewers for their comments. The author would like to express thanks to Erasmus students Naiara Irigoyen Indave and Victor Nuin Irujo from Public University of Navarre at Pamplona, Spain, who during stay at AGH University of Science and Technology at Krakow, Poland, helped in preparing some tables, graphs, and some analyses of results presented in this research.

Citation

Sawik, B. (2020), "Multiobjective Newsvendor Models with CVaR for Flower Industry", Lawrence, K.D. and Pai, D.R. (Ed.) Applications of Management Science (Applications of Management Science, Vol. 20), Emerald Publishing Limited, Leeds, pp. 3-30. https://doi.org/10.1108/S0276-897620200000020002

Publisher

:

Emerald Publishing Limited