The price-setting newsvendor with Poisson demand

Schulte, Benedikt; Sachs, Anna‐Lena

doi:10.1016/j.ejor.2019.10.039

Cited by 12 publications

(5 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Recently, the price-setting newsvendor problem with multiple criteria was considered in [36][37][38][39][40][41][42][43][44]. The price-setting newsvendor problem with the mean-variance analysis used in the objective function was carried out in [36,37].…”

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

“…They used the prospect theory to show that optimism increases inventory. Schulte and Sachs [44] put forward a solution to the price-setting newsvendor with Poisson demand. They analyzed differences between continuous and discrete versions of the model and presented the decision rule of using heuristics to solve the optimization problem.…”

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

See 1 more Smart Citation

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bieniek

2021

Sustainability

View full text Add to dashboard Cite

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.

show abstract

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

Section: Price-setting Newsvendor Problemmentioning

confidence: 99%

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bieniek

2021

Sustainability

View full text Add to dashboard Cite

show abstract

“…Given the ongoing interest in this area of study, many extensions of the Newsvendor model are continuously updated and revised. For example, a recent study by Schulte & Sachs (2020) proposes a revision to the price-setting Newsvendor model, first introduced by Whitin (1955), by considering demand as a Poisson distribution.…”

Section: Newsvendor Modelmentioning

confidence: 99%

Forecasting Sales and Developing a Newsvendor Model for Weather-sensitive Retail Products

Chan

2024

Preprint

View full text Add to dashboard Cite

<p>The sales of many retail products are affected by the weather. As the weather becomes more erratic due to climate change, retailers must respond by using weather information to help them plan their inventory. This thesis develops a sales forecasting model and an inventory planning model using weather information. The sales forecasting model is developed using several machine learning algorithms and several different sets of timeshifted weather features. Meanwhile, the inventory planning model is developed based on the Newsvendor model considering the demand-temperature relationship and solving the optimal order quantity. Both models are analyzed using sales data obtained from a large Canadian retailer. Using this data, important weather features are identified through analysis of the sales forecasting models. The results are then used in a numerical example and sensitivity analysis to demonstrate the proposed inventory planning model.</p>

show abstract

“…(2020) investigate the optimal ordering strategies of an assembler facing two types of supply uncertainty simultaneously namely uncertain capacity and random yield production. Schulte and Sachs (2020) studied the price-setting newsvendor model with Poisson demand which is a discrete demand distribution without density function. Xie et al .…”

Section: Literature Review and Background Of The Studymentioning

confidence: 99%

“…Ji et al (2020) investigate the optimal ordering strategies of an assembler facing two types of supply uncertainty simultaneously namely uncertain capacity and random yield production. Schulte and Sachs (2020) studied the price-setting newsvendor model with Poisson demand which is a discrete demand distribution without density function. Xie et al (2021) one-period two-stage supply chain, in which a loss-averse retailer facing stochastic demand orders products from a risk-neutral supplier subject to supply IJQRM 41,1 uncertainty where marketing effort exerted by the retailer is employed to enhance the final market demand.…”

Section: Literature Review and Background Of The Studymentioning

confidence: 99%

Improvement of supplier delivery performance under uncertain capacity allocation and delivery time window

Sakhare,

Chakraborty,

Sarmah

et al. 2023

IJQRM

View full text Add to dashboard Cite

PurposeOriginal equipment manufacturers and other manufacturing companies rely on the delivery performance of their upstream suppliers to maintain a steady production process. However, supplier capacity uncertainty and delayed delivery often poses a major concern to manufacturers to carry out their production plan as per the desired schedules. The purpose of this paper is to develop a decision model that can improve the delivery performance of suppliers to minimise fluctuations in the supply quantity and the delivery time and thus maximising the performance of the supply chain.Design/methodology/approachThe authors studied a single manufacturer – single supplier supply chain considering supplier uncertain capacity allocation and uncertain time of delivery. Mathematical models are developed to capture expected profit of manufacturer and supplier under this uncertain allocation and delivery behaviour of supplier. A reward–penalty mechanism is proposed to minimise delivery quantity and time of delivery fluctuations from the supplier. Further, an order-fulfilment heuristic based on delivery probability is developed to modify the order quantity which can maximise the probability of a successful deliveries from the supplier.FindingsAnalytical results reveal that the proposed reward–penalty mechanism improves the supplier delivery consistency. This consistent delivery performance helps the manufacturer to maintain a steady production schedule and high market share. Modified ordering schedule developed using proposed probability-based heuristic improves the success probability of delivery from the supplier.Practical implicationsPractitioners can benefit from the findings of this study to comprehend how contracts and ordering policy can improve the supplier delivery performance in a manufacturing supply chain.Originality/valueThis paper improves the supplier delivery performance considering both the uncertain capacity allocation and uncertain time of delivery.

show abstract

The price-setting newsvendor with Poisson demand

Cited by 12 publications

References 33 publications

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Bartering: Price-Setting Newsvendor Problem with Barter Exchange

Forecasting Sales and Developing a Newsvendor Model for Weather-sensitive Retail Products

Improvement of supplier delivery performance under uncertain capacity allocation and delivery time window

Contact Info

Product

Resources

About