Value Chain Coordination Using Multiple Period Newsboy Model.

A number of commodities, such as electronic components, computer, communication and consumer electronics (3C) products, and fashion goods, are characterized by limited lifecycles with multiple replenishing cycles. A retailer can purchase these commodities many times within a short selling season. But these commodities can be replenished once during each cycle. Then, a multi-period newsboy model extended from a single period newsboy model can be applied. This paper will extend the traditional single period newsboy model to a multi-period model between a manufacturer and a retailer to determine replenishment decisions for a product characterized by multiple ordering during a selling season that is replenishing only once during each period. For achieving the value chain coordination and enhancing the profits of all supply chain members, some coordination mechanisms will be adopted. A numerical analysis will be provided to demonstrate the proposed model. [ABSTRACT FROM AUTHOR]