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All Journal International Journal of Supply Chain Management
Harbi, Slim
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Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Optimizing Unsold Inventory Decisions under the Newsvendor Model Mechmech, Rihab; Harbi, Slim; Hadj-Alouane, Atidel B.; Sboui, Sami
International Journal of Supply Chain Management Vol 14, No 6 (2025): International Journal of Supply Chain Management (IJSCM)
Publisher : ExcelingTech

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59160/ijscm.v14i6.6365

Abstract

Unsold products represent a persistent operational and financial challenge for manufacturers, wholesalers, and retailers. This paper aims to address the problem of unsold inventory management by developing a decision-support framework for clearance strategies. Based on the newsvendor model, the proposed approach jointly optimises supply chain profit from regular market sales and clearance sales. The optimisation relies on a qualitative risk–performance assessment of alternative clearance strategies, incorporating managers’ industrial knowledge. A numerical illustration highlights the main drivers influencing the selection of an optimal clearance policy, namely acceptable risk levels, expected clearance revenues, and capacity constraints. The results provide actionable managerial insights and are synthesised into a practical decision-making approach to support practitioners in selecting effective clearance strategies. The proposed framework is applicable to both seasonal and non-perishable products.
Co-Authors Hadj-Alouane, Atidel B. Mechmech, Rihab Sboui, Sami