The price-setting newsvendor: review and extensions

DeYong, Gregory D.

doi:10.1080/00207543.2019.1671624

Cited by 21 publications

(4 citation statements)

References 66 publications

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“…DeYong [32] states that the newsvendor problem is a staple of OR practice and pedagogy. In the basic formulation, the newsvendor problem aims at finding an optimal replenishment policy for a perishable product in the face of uncertain demand.…”

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

“…The model provides a coherent description of the problem, and it is worth mentioning that the newsvendor problem has a number of applications far beyond the original ones. The model is employed to manage distribution channels, operating room time, tax-sheltered income, service level capacity, air cargo, airlines, and hotels [32]. Many modifications of this basic model have been introduced, adding to the complexity of the problem [24,35].…”

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

“…This modification has been applied for decades. However, over the recent years, the issue has become an increasingly popular subject matter studied by scholars and practitioners [32].…”

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

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Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bieniek

2021

Sustainability

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Barter exchange is a system of swapping goods or services for other goods or services in a moneyless and direct manner. Barter has become an effective model of a circular economy because it reduces the consumption impact. Bartering maximizes the utility of assets and existing resources, and can unleash the unspent social, economic, and environmental value of underutilized assets. The present article analyzes the price-setting newsvendor problem with a barter exchange option. The retailer facing a stochastic price-dependent demand sells a product on the market and, additionally, needs another product for its own purposes. Therefore, first, the retailer trades the unsold product for the product it needs by means of barter, and next disposes of the unsold product at a discounted price at the end of the selling season. The retailer’s optimal order quantity and optimal price are derived assuming additive uncertainty in demand. This type of demand function has special characteristics, for example, the actual demand may attain negative values in times of economic uncertainty. The possibility of negative demand realizations is taken into consideration in the study. It proves that, in certain cases, the optimal solution belongs to the set of high barter prices which implies that the actual demand may be negative.

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Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

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Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bieniek

2021

Sustainability

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“…Therefore, we need to propose a novel profit model to reasonably estimate profits of membership merchants. "Newsvendor problem" [31] is a typical single-cycle storage problem in operations research. In Env-profit, membership merchants are similar to the newsvendors, and vouchers are similar to the newspapers.…”

mentioning

confidence: 99%

A Dual Incentive Value-Based Paradigm for Improving the Business Market Profitability in Blockchain Token Economy

et al. 2022

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Blockchain solves the problem of mutual trust and consensus in the business market of the token economy. In the existing paradigm of blockchain token economy, there are disadvantages of lacking the incentive mechanism, business applications and virtual token value. These shortcomings reduce consumers’ willingness to consume and the profits of the merchants. In this paper, we propose a novel “Dual incentive value-based” paradigm to improve the business market profitability in blockchain token economy. To evaluate our proposed paradigm, we propose a business study case for improving merchants’ environment state. In this case, we set up two economic models and make simulations to validate the profitability. The result shows that merchants with the novel paradigm have 32% more profit compared with those without the paradigm and at most 10% more profitable than those in existing paradigms.

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Forward ADP III : Convex Resource Allocation Problems

2022

Reinforcement Learning and Stochastic Optimization

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The price-setting newsvendor: review and extensions

Cited by 21 publications

References 66 publications

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

A Dual Incentive Value-Based Paradigm for Improving the Business Market Profitability in Blockchain Token Economy

Forward ADP III : Convex Resource Allocation Problems

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