Research Of Newsboy Model In Supply Chain Management

As market economy is increasingly competitive, Newsboy model has become more and more important in supply chain for scholars and entrepreneurs.In the paper, I did the research:(1)Describes the classical newsboy model, calculates the Expectation, Variance and Semi-Variance of profits. On this basis, proposes the Performance Function to balance profit and risk.(2)When comes to Reordering Newsboy Model, I make model simulation on different market demand module, make comparison between those market demand on profit and risk.(3)Two times ordering and reduce price selling.(4)Newsboy module with Out of Stock Losses module, in this module, I studied it’s semi-variance, and made a comparison with classic newsboy module in simulation.(5) Newsboy module with budget constraints, and alternative products.The main innovation of this study are:(1) Extend the method of Semi-Variance into newsboy module which has out-of-stock losses.(2)Propose performance function to effectively balance the benefits and risks.(3)Simulate in different market demand module, and make comparision of the results.