DocumentCode
3000432
Title
Newsvendor problem with pricing: properties, algorithms, and simulation
Author
Zhan, Roger L. ; Shen, Zuo-Jun Max
Author_Institution
ISE Dept., Florida Univ., Gainesville, FL, USA
fYear
2005
fDate
4-7 Dec. 2005
Abstract
When a newsvendor faces stochastic price-sensitive demands, he/she has to make the pricing and inventory decisions before the demand is realized. In the literature, this problem is typically solved by reducing it to an optimization problem over a single variable. In contrast, we treat this problem as a nonlinear system of two variables and provide some solution properties (e.g. existence, uniqueness) of the system. We also develop an iterative algorithm and a simulation based algorithm for this problem.
Keywords
inventory management; iterative methods; nonlinear systems; optimisation; pricing; simulation; supply and demand; inventory decision; iterative algorithm; newsvendor problem; nonlinear system; optimization problem; pricing; simulation based algorithm; stochastic price-sensitive demands; Costs; Equations; Inventory management; Iterative algorithms; Milling machines; Nonlinear systems; Pricing; Procurement; Search methods; Stochastic processes;
fLanguage
English
Publisher
ieee
Conference_Titel
Simulation Conference, 2005 Proceedings of the Winter
Print_ISBN
0-7803-9519-0
Type
conf
DOI
10.1109/WSC.2005.1574447
Filename
1574447
Link To Document