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The Newsboy Problem with Price-dependent Demand Distribution and Multiple Discounts

Author

Listed:
  • Zied Jemai

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • S Ma
  • Y. Dallery

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Evren Sahin

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

Abstract

Earlier papers on the newsboy problem considered the determination of optimal price and quantity when the demand is price-dependent or there are multiple discounts. In the real world, price dependence and multiple discount can both happen. But no complete work was done for the joint determination of the order quantity and initial price. In this paper, we present a solution procedure for this problem with general demand distributions in two cases of price-dependent demand: additional case and multiplicative case. We provide some insights by using numerical examples and show the influence of the number of discounts on the expected profit.

Suggested Citation

  • Zied Jemai & S Ma & Y. Dallery & Evren Sahin, 2014. "The Newsboy Problem with Price-dependent Demand Distribution and Multiple Discounts," Post-Print hal-01672412, HAL.
  • Handle: RePEc:hal:journl:hal-01672412
    as

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