Newsvendor problem with pricing: properties, algorithms, and simulation

Authors:
Roger L. Zhan;Zuo-Jun Max Shen
Affiliations:
University of Florida, Gainesville, FL;University of California, Berkeley, CA
Venue:
WSC '05 Proceedings of the 37th conference on Winter simulation
Year:
2005

Citing 1
Cited 2

Pricing and the News Vendor Problem: a Review with Extensions

Operations Research

Newsvendor pricing with fuzzy demand

FS'07 Proceedings of the 8th Conference on 8th WSEAS International Conference on Fuzzy Systems - Volume 8
A simulation-based approach for obtaining optimal order quantities of short-expiration date items at a retail store

Proceedings of the Winter Simulation Conference

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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.