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An efficient heuristic for the multi-product satiating newsboy problem

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  • Khanra, Avijit

Abstract

Preference of satiation of a target performance over maximization of expected performance in uncertain situations is well-documented in the economics literature. However, the newsboy problem with satiation (of a pro t target) objective has not received its due attention. In the multi-product setting, solution methods available in the literature are inecient. We developed an ecient heuristic to solve the problem. The heuristic decomposes the multi-product problem into easily solvable single-product problems. We tested the heuristic with a large number of test instances. The heuristic can be adopted to solve the \target assignment problem". We demonstrated it with some numerical examples.

Suggested Citation

  • Khanra, Avijit, 2014. "An efficient heuristic for the multi-product satiating newsboy problem," IIMA Working Papers WP2014-06-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:12898
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    1. repec:iim:iimawp:12794 is not listed on IDEAS
    2. Khanra, Avijit & Soman, Chetan, 2014. "Heuristics for the multi-product satiating newsboy problem," IIMA Working Papers WP2014-01-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Khanra, Avijit, 2014. "Multi-product newsboy problem with satiation objective," IIMA Working Papers WP2014-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Shi, Chunming Victor & Zhao, Xuan & Xia, Yu, 2010. "The setting of profit targets for target oriented divisions," European Journal of Operational Research, Elsevier, vol. 206(1), pages 86-92, October.
    5. E. Sankarasubramanian & S. Kumaraswamy, 1983. "Note---Note on "Optimal Ordering Quantity to Realize a Pre-Determined Level of Profit"," Management Science, INFORMS, vol. 29(4), pages 512-514, April.
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