The distribution-free newsboy problem with resalable returns

We study the case of a catalogue/internet mail order retailer selling seasonal productsand receiving large numbers of commercial returns. Returned products arriving beforethe end of the selling season can be resold if there is sufficient demand. A single orderis placed before the season starts. Excess inventory at the end of the season is salvagedand all demands not met directly are lost. Since little historical information is available,it is impossible to determine the shape of the distribution of demand. Therefore, weanalyze the distribution-free newsboy problem with returns, in which only the mean andvariance of demand are assumed to be known. We derive a simple closed-form expressionfor the distribution-free order quantity, which we compare to the optimal order quantities whengross demand is assumed to be normal, lognormal or uniform. We find that the distribution-freeorder rule performs well in most realistic cases.inventory;product returns;distribution-free newsboy problem

The distribution-free newsboy problem with resalable returns

We study the case of a catalogue/internet mail order retailer selling seasonal products and receiving large numbers of commercial returns. Returned products arriving before the end of the selling season can be resold if there is sufficient demand. A single order is placed before the season starts. Excess inventory at the end of the season is salvaged and all demands not met directly are lost. Since little historical information is available, it is impossible to determine the shape of the distribution of demand. Therefore, we analyze the distribution-free newsboy problem with returns, in which only the mean and variance of demand are assumed to be known. We derive a simple closed-form expression for the distribution-free order quantity, which we compare to the optimal order quantities when gross demand is assumed to be normal, lognormal or uniform. We find that the distribution-free order rule performs well in most realistic cases

Modularity and Commonality Research: Past Developments and Future Opportunities

Research on modularity and commonality has grown substantially over the past 15 years. Searching 36 journals over more than the past 35 years, I identify over 160 references in the engineering and management literature that focus on modularity or commonality in the product and process development context. Each of the references is analyzed along the dimensions subject, effect, and research method. The subjects of these studies have been products, processes, organizations, and even innovations, although the set of references shows a strong preference towards products. Similarly, a broad range of effects has been studied, albeit with the topic cost dominating all other effects. A variety of research methods has been applied to the study of modularity and commonality but the distribution of research methods differs substantially for modularity and commonality research. Despite the wealth of existing research, there are still significant opportunities for future research. In particular, studies that incorporate modularity and commonality’s multiple effects on various players along the supply chain, that combine multiple research methods, and that follow systems over time appear very promising