A Research on Ordering of Cross-selling Products based on Business Expansion

doi:10.3969/j.issn.1007-7375.e17-1183

Abstract

Abstract: Constructing a sales mix based on the cross-selling mode to study the order quantities for the products within the portfolio is a key problem in inventory decision. A two-product asymmetric model is established to study the business expansion of an enterprise from a horizontal perspective, and the optimal condition and solution of this nonlinear constrained programming model are derived. It is proved that with the increase of the fluctuation of the correlation coefficient and weakening of the new product's demand distribution attributes, based on the existing sales mix, the enterprise will take the contractile strategy to reduce the order quantity of the original product for the maximization of the overall profit of the two products. Finally, simulations with numerical examples are carried out with the help of MATLAB software.

Key words: business expansion, cross-selling, newsvendor model, non-linear programming

CLC Number:

LI Shourong, ZHANG Renqian. A Research on Ordering of Cross-selling Products based on Business Expansion[J]. Industrial Engineering Journal , 2018, 21(2): 19-26.

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