Application Analysis on Newsboy Model in Perishable Products (ID: 6-019)

摘要

Perishable products refer to such goods that have long product lead time, short product life cycle, low-value stock and uncertain demands. With the development of the service industry in China more and more perishable products come to our life. In order to get the maximum earnings franchiser should decide the appropriate order quantity, otherwise more or less order quantity will result in more loss. Newsboy model is a traditional decision model in operation research. It can find a way to get the optimum order quantity. This paper firstly describes the characteristics of the perishable products, then presents the algorithm and deduction process of Newsboy Model, finally analyzes the application method of this model with a case study.