Optimal ordering and pricing decisions for a target oriented newsvendor

被引:34
|
作者
Yang, Shilei [2 ]
Shi, Chunming Victor [1 ]
Zhao, Xuan [1 ]
机构
[1] Wilfrid Laurier Univ, Sch Business & Econ, Waterloo, ON N2L 3C5, Canada
[2] SW Univ Finance & Econ, Sch Business Adm, Chengdu 610074, Sichuan, Peoples R China
来源
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE | 2011年 / 39卷 / 01期
基金
加拿大自然科学与工程研究理事会;
关键词
Newsvendor; Pricing; Target; Decision making; OBJECTIVES; MODEL;
D O I
10.1016/j.omega.2010.04.003
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
This paper is the first to study pricing and target oriented decision making together in the newsvendor model. Specifically, this paper studies a newsvendor who decides on order quantity and selling price to maximize the probability of achieving both profit and revenue targets simultaneously. First, it is shown that the probability of a newsvendor achieving both targets depends critically on the relative magnitudes of the profit margin and the ratio between the profit target and the revenue target. Second, the closed-form expressions of the optimal order quantity, the optimal selling price, and the maximal profit and revenue probability are obtained. It is shown that if the product has greater price elasticity, the best strategy is always to price lower and order more. (C) 2010 Elsevier Ltd. All rights reserved.
引用
收藏
页码:110 / 115
页数:6
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