The Food Truck Problem, Supply Chains and Extensions of the Newsvendor Problem
Inventory control is important to ensuring sufficient quantities of items are available tomeet demands of customers. The Newsvendor problem is a model used in Operations Research to determine optimal inventory levels for fulfilling future demands. Our study extends the newsvendor problem to a food t...
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| Format: | Others |
| Language: | English |
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Digital Commons @ East Tennessee State University
2021
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| Online Access: | https://dc.etsu.edu/etd/3905 https://dc.etsu.edu/cgi/viewcontent.cgi?article=5404&context=etd |
| Summary: | Inventory control is important to ensuring sufficient quantities of items are available tomeet demands of customers. The Newsvendor problem is a model used in Operations Research to determine optimal inventory levels for fulfilling future demands. Our study extends the newsvendor problem to a food truck problem. We used simulation to show that the food truck does not reduce to a newsvendor problem if demand depends on exogenous factors such temperature, time etc. We formulate the food truck problem as a multi-product multi-period linear program and found the dual for a single item. We use Discrete Event Simulation to solve the stochastic version of the dual and found the optimal order to maximize the food vendors profit. |
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