A newsboy problem with a simple reservation arrangement

Liang-Hsuan Chen, Ying Che Chen

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

Newsboy problems have always been an important issue in inventory management. A number of methods have been proposed to solve such problems based on different objectives or considerations. Different from the existing studies, this paper presents a newsboy model with a simple reservation arrangement by introducing the willingness rate, represented as the function of the discount rate, into the models. Mathematical models are developed, and the solution procedure is derived for determining the optimal discount rate and the optimal order quantity. Through the numerical example, we demonstrated the varied profits yielded from the models considering the reservation arrangement, depending on the number of consumers who accept the reservation policy. The profits derived are greater than those from the classical newsboy model, due to the consideration of the reservation.

Original languageEnglish
Pages (from-to)157-160
Number of pages4
JournalComputers and Industrial Engineering
Volume56
Issue number1
DOIs
Publication statusPublished - 2009 Feb 1

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Engineering(all)

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