A multi-objective two-echelon newsvendor problem with limited budget and capacity

In this paper, a two-echelon newsvendor problem is considered. Many real-life spheres including fashion, food industries, and healthcare services run into problems similar to newsvendor problem. Our problem is determining inventory levels in order to optimize the prot and service level in selling a product. This product is made up of several raw materials. Only the distribution of demand is known and the hot season of selling the product is just a short period; after that, the price of the product drops dramatically. The storage space and initial budget are limited. The problem is modeled and solved as an unconstrained nonlinear optimization problem using two nonlinear techniques: the Sequential Unconstrained Minimization Technique (SUMT) and Steepest Descent (SD).