A simulation-based approach for obtaining optimal order quantities of short-expiration date items at a retail store

Haixia Sang, Soemon Takakuwa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The uncertain demand of expiration-dated item often leads to scrap losses or opportunity losses, which result in resource wasting and the degradation of customer satisfaction. In this paper, a well known exponential smoothing method was modified to forecast the hourly demand of rice balls, by utilizing the concept of the newsvendor problem, and a simulation model was constructed to simulate the scrap loss and opportunity loss changes. The optimal order quantity's characteristics, which can maximize the retailer's expected profit, were clarified by using OptQuest and sensitivity analysis. The proposed approach was applied to a real store to confirm its effectiveness.

Original languageEnglish
Title of host publicationProceedings of the 2012 Winter Simulation Conference, WSC 2012
DOIs
Publication statusPublished - 2012 Dec 1
Externally publishedYes
Event2012 Winter Simulation Conference, WSC 2012 - Berlin, Germany
Duration: 2012 Dec 92012 Dec 12

Other

Other2012 Winter Simulation Conference, WSC 2012
CountryGermany
CityBerlin
Period12/12/912/12/12

Fingerprint

Retail stores
Date
Simulation
Newsvendor Problem
Exponential Smoothing
Customer Satisfaction
Smoothing Methods
Customer satisfaction
Sensitivity analysis
Sensitivity Analysis
Profit
Forecast
Profitability
Simulation Model
Ball
Degradation
Maximise
Resources
Demand

ASJC Scopus subject areas

  • Software
  • Modelling and Simulation
  • Computer Science Applications

Cite this

A simulation-based approach for obtaining optimal order quantities of short-expiration date items at a retail store. / Sang, Haixia; Takakuwa, Soemon.

Proceedings of the 2012 Winter Simulation Conference, WSC 2012. 2012. 6465063.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Sang, H & Takakuwa, S 2012, A simulation-based approach for obtaining optimal order quantities of short-expiration date items at a retail store. in Proceedings of the 2012 Winter Simulation Conference, WSC 2012., 6465063, 2012 Winter Simulation Conference, WSC 2012, Berlin, Germany, 12/12/9. https://doi.org/10.1109/WSC.2012.6465063
Sang, Haixia ; Takakuwa, Soemon. / A simulation-based approach for obtaining optimal order quantities of short-expiration date items at a retail store. Proceedings of the 2012 Winter Simulation Conference, WSC 2012. 2012.
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