Items, here newspapers, have to be procured at the beginning of a time period and are discarded (or sold at a discounted price) at the end of the time period. The demand is assumed to be a random variable with known distribution. The problem is to determine how many items to stock at the beginning of the time period to minimize expected cost. This leads to a closed-form, single-period inventory model with stochastic demand. The problem statement also applies to items such as Christmas trees, time-dependent fashions, and items that can be stored until the next season like snow tires and Chanukah candles. Inventory modeling.
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© 2001 Kluwer Academic Publishers
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Gass, S.I., Harris, C.M. (2001). Newsboy problem . In: Gass, S.I., Harris, C.M. (eds) Encyclopedia of Operations Research and Management Science. Springer, New York, NY. https://doi.org/10.1007/1-4020-0611-X_669
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DOI: https://doi.org/10.1007/1-4020-0611-X_669
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