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Course Description

Some products have only a short time on the market before they spoil, go out of season, or are replaced by newer technologies. Fresh fruits and vegetables, for example, have a shelf life of only a few weeks at most. Even more durable items such as cell phones must be replaced every few years as technology advances. Managing short-lifecycle inventory requires a different strategy compared to items with an indefinite shelf life. The newsvendor model, whose name is inspired by the rapid stock turnover that newspaper vendors face, is one strategy for optimizing short-lifecycle inventory. In this lesson, you will investigate the newsvendor model and its applications for managing short-lifecycle products. You will find out how to use this model to determine optimal production quantity, thereby reducing overage and underage costs. Finally, you will practice calculating the optimal production quantity for the newsvendor model in Excel.

Benefits to the Learner

  • Optimize the production quantity for short-lifecycle products without capacity limit
  • Measure demand and supply model parameters for short-lifecycle products
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Type
self-paced (non-instructor led)
Dates
Sep 28, 2023 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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