The distribution-free newsboy problem with multiple discounts and upgrades
type: Item
instance of: scholarly article
title: The distribution-free newsboy problem with multiple discounts and upgrades
zbMATH Open document ID: 1400.90010
DOI: 10.1155/2016/2017253
author: Dong Kyoon Yoo
author: Subrata Saha
author: Ilkyeong Moon
published in: Mathematical Problems in Engineering
publication date: 2018-10-12T00:00:00Z
review text: Summary: Most papers on the newsboy problem assume that excess inventory is either sold after discount or discarded. In the real world, overstocks are handled with multiple discounts, upgrades, or a combination of these measures. For example, a seller may offer a series of progressively increasing discounts for units that remain on the shelf, or the seller may use incrementally applied innovations aimed at stimulating greater product sophistication. Moreover, the normal distribution does not provide better protection than other distributions with the same mean and variance. In this paper, we find the differences between normal distribution approaches and distribution-free approaches in four scenarios with mean and variance of demand as the only available data to decision-makers. First, we solve the newsboy problem by considering multiple discounts. Second, we formulate and solve the newsboy problem by considering multiple upgrades. Third, we formulate and solve a mixed newsboy problem characterized with multiple discounts and upgrades. Finally, we extend the model to solve a multiproduct newsboy problem with a storage or a budget constraint and develop an algorithm to find the solutions of the models. Concavity of the models is proved analytically. Extensive computational experiments are presented to verify the robustness of the distribution-free approach. The results show that the distribution-free approach is robust.
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 6952876
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2016/2017253
OpenAlex ID: W2515199730
Wikidata QID: Q59131082
cites work: The Distribution Free Newsboy Problem: Review and Extensions
cites work: Distribution Free Procedures for Some Inventory Models
cites work: A note on lead time and distributional assumptions in continuous review inventory models.
cites work: Some stochastic inventory models with deterministic variable lead time
cites work: Min-max distribution free continuous-review model with a service level constraint and variable lead time
cites work: On the distribution-free newsboy problem with some non-skewed demands
cites work: Impacts of transportation cost on distribution-free newsboy problems
cites work: Distribution-free continuous review inventory model with controllable lead time and setup cost in the presence of a service level constraint
cites work: Analyzing process flexibility: a distribution-free approach with partial expectations
cites work: A minimax distribution-free procedure for a newsvendor problem with free shipping
cites work: The newsvendor problem: review and directions for future research
cites work: Q5343971
cites work: Robust newsvendor problem with autoregressive demand
cites work: Managing the newsvendor modeled product system with random capacity and capacity-dependent price
cites work: Pricing and the Newsvendor Problem: A Review with Extensions
cites work: The newsboy problem under progressive multiple discounts
cites work: The multi-item newsvendor problem with a budget constraint and fixed ordering costs
cites work: The multi-product newsboy problem with supplier quantity discounts and a budget constraint
cites work: An efficient heuristic for the multi-item newsboy problem with a single constraint
cites work: The newsstand problem: A capacitated multiple-product single-period inventory problem
cites work: Monopoly and product quality
cites work: Optimal Price and Product Quality Decisions in a Distribution Channel
description: scientific article; zbMATH DE number 6952876