清华大学-生产计划与控制：PPC-L08-Inventory-Control-B-2.pdfVIP

Lecture 8Lecture 8 Inventory ControlInventory Control Subject to Uncertain DemandSubject to Uncertain Demand (2)(2) Ye ChengYe Cheng Dept. of Industrial EngineeringDept. of Industrial Engineering Tsinghua UniversityTsinghua University 1 The Newsboy Model Example: Mac’s newsstand Purchase the Computer Journal (weekly) each Sunday Historical data shows normal distribution Mean = 11.73, standard deviation = 4.74 Purchase cost = 25 cents Selling price = 75 cents Compensation of unsold = 10 cents Meet the mean demand = 12 copies ??? Wrong The same frequency for stock-out and oversupply solution! Purchase a copy that do not sell Lose 25-10 = 15 cents Should buy more Unable to meet the demand of a customer than the mean! Lose 75-25 = 50 cents Ye Cheng, Dept. IE, Tsinghua University                            PPC                  Lecture 8  Inventory Control Subject to Uncertain Demand (2) 2 Development of the Cost Function (1/2) The cost is a function of the random variable D and the decision variable Q Determine the expected value of the cost with respect to the distribution of demand Determine the value of Q that minimizes the expected cost Number of units remaining on hand at the end of the period Q − D if Q ≥ D ⎧ max {Q − D,0} ⎨ ⎩0 if Q ≤ D Unsatisfied demand remaining at the end of the period D − Q if D ≥ Q ⎧ max {D −Q,0} ⎨ ⎩0