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The Multi-product Newsboy Problem with Price-Depended Demand and Fast Moving Items

  • Anna Kitaeva
  • Klimentii LivshitsEmail author
  • Ekaterina Ulyanova
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 800)

Abstract

The present paper supposes that the newsboy sells multiple products, and in addition to determining optimal order quantities needs to determine the prices of each product. The demand for each product is a compound Poisson process that depends on the demands of other products. We suppose that the price-dependent intensity of the demand is large enough to use the normal approximation to the joint demand distribution. The goal of the retailer’s decision is to maximize his profit. Equations for optimal retail price under optimal order quantity are obtained and approximate solutions are proposed. Also approximate distribution of the selling time of a large order is found.

Keywords

Newsboy problem Multiple products Fast moving items Selling time distribution 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Anna Kitaeva
    • 1
  • Klimentii Livshits
    • 1
    Email author
  • Ekaterina Ulyanova
    • 1
  1. 1.National Research Tomsk State UniversityTomskRussia

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