On the unimodality of the manufacturer's objective function in the newsvendor model

Authors:
Anand Paul
Affiliations:
Decision and Information Sciences, 351 Stuzin, Warrington College of Business, University of Florida, Gainesville, FL 32611-7150, USA
Venue:
Operations Research Letters
Year:
2006

Citing 3
Cited 1

Selling to the Newsvendor: An Analysis of Price-Only Contracts

Manufacturing & Service Operations Management
Relationships Among Three Assumptions in Revenue Management

Operations Research
A Note on Probability Distributions with Increasing Generalized Failure Rates

Operations Research

Equilibrium Returns Policies in the Presence of Supplier Competition

Marketing Science

Quantified Score

Hi-index	0.00

Visualization

Abstract

We derive new sufficient conditions for the manufacturer's profit function to be unimodal. We show that if the demand density function is unimodal and right-skewed, then the profit function is quasi-concave over the support of the distribution. We also report some counterintuitive properties of the profit function.