What is it about?
We introduce a way to model returns of cores from past demands and past sales. Based on these models applied to a periodic review inventory model with stochastic demands, we obtain an optimal inventory policy with a nice structure for the model when returns of cores is modelled from past demands, and a feasible inventory policy also with a nice structure for the model when returns of cores is modelled from past sales. For the latter, we analyse how close the feasible policy is from the optimal policy.
Featured Image
Why is it important?
This is the first time, to the best of our knowledge, that returns of cores from past sales is being modelled, and is then applied to a periodic review inventory model with stochastic demands. This is important as it fills a gap in the literature on modelling returns from past sales, as in the literature, returns are modelled from past demands, which is not realistic since data from past demands is not easy to obtain.
Perspectives
The work in the paper is done mostly by the second author, with financial support provided by a grant obtained by the first and third author.
Dr Chee Khian Sim
University of Portsmouth
Read the Original
This page is a summary of: Policies for inventory models with product returns forecast from past demands and past sales, Annals of Operations Research, February 2020, Springer Science + Business Media,
DOI: 10.1007/s10479-020-03545-4.
You can read the full text:
Contributors
The following have contributed to this page
