Single-period multiproduct inventory models with substitution
成果类型：
Article
署名作者：
Bassok, Y; Anupindi, R; Akella, R
署名单位：
University of Washington; University of Washington Seattle; Northwestern University; Stanford University
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.47.4.632
发表日期：
1999
页码：
632-642
关键词：
摘要：
We study a single period multiproduct inventory problem with substitution and proportional costs and revenues. We consider N products and N demand classes with full downward substitution, i.e., excess demand for class i can be satisfied using product j for i greater than or equal to j. We first discuss a two-stage pra fit maximization formulation for the multiproduct substitution problem. We show that a greedy allocation policy is optimal. We use this to write the expected profits and its first partials explicitly. This in turn enables us to prove additional properties of the profit function and several interesting properties of the optimal solution. In a limited computational study using two products, we illustrate the benefits of solving for the optimal quantities when substitution is considered at the ordering stage over similar computations without considering substitution while ordering. Specifically, we show that the benefits are higher with high demand variability, low substitution cost, low profit margins (or low price to cost ratio), high salvage values, and similarity of products in terms of prices and costs.