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Article Dans Une Revue Applied Mathematical Modelling Année : 2019

Inventory rationing for the News-Vendor problem with a drop-shipping option

Shouyu Ma
Zied Jemai

Résumé

We consider a single-period inventory model for a bricks-and-clicks business. Store inventory can be used to fulfill both store demand and internet demand. Drop-shipping is used as an additional option for internet sale. We analyze two rationing policies for store inventory: a threshold policy and a fixed-portion policy. We formulate the expected profit for both and prove concavity. There exists an optimal order quantity for store inventory and an optimal stock rationing level below which the manager starts to use drop-shipping for internet demand. Numerical examples show that considering the rationing problem for the single-period inventory model, which is ignored in some earlier works, can result in remarkable differences.

Dates et versions

hal-02455038 , version 1 (25-01-2020)

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Shouyu Ma, Zied Jemai. Inventory rationing for the News-Vendor problem with a drop-shipping option. Applied Mathematical Modelling, 2019, ⟨10.1016/j.apm.2019.02.039⟩. ⟨hal-02455038⟩
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