The effect of demand uncertainty in a price-setting newsvendor model

European Journal of Operational Research

Volumn 207, Issue 2, 2010, Pages 946-957

  Xu, Minghui ^a   Chen, Youhua Frank ^b   Xu, Xiaolin ^c  

^a WUHAN UNIVERSITY   (China)

^b CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

^c NANJING UNIVERSITY   (China)

Author keywords

Demand uncertainty; Newsvendor; Pricing; Stochastic comparison

Indexed keywords

DEMAND UNCERTAINTY; EXPECTED PROFITS; NEWSVENDOR MODELS; NEWSVENDORS; OPTIMAL DECISIONS; ORDER SIZE; PRICE SETTING; SELLING PRICES; SHORTAGE COST; STOCHASTIC COMPARISONS; STOCHASTIC DEMAND; VARIABLE DEMANDS;

EARNINGS; PROFITABILITY; SALES; STOCHASTIC SYSTEMS;

COSTS;

EID: 77955556220     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2010.06.024     Document Type: Article

References (21)

1. V. Agrawal, and S. Seshadri Impact of uncertainty and risk aversion on price and order quantity in the newsvendor problem Manufacturing & Service Operations Management 2 2000 410 423
2. J. Chen, and P.C. Bell The impact of customer returns on pricing and order decisions European Journal of Operational Research 195 1 2009 280 295
3. W. Elmaghraby, and P. Keskinocak Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions Management Scicence 49 10 2003 1287 1309
4. Y. Gerchak, and Q. He On the relation between the benefits of risk pooling IIE Transactions 35 11 2003 1027 1031
5. Y. Gerchak, and D. Mossman On the effect of demand randomness on inventories and costs Operations Research 40 4 1992 804 807
6. D. Granot, and S. Yin Price and order postponement in a decentralized newsvendor model with multiplicative and price-dependent demand Operations Research 56 1 2008 121 139
7. D. Granot, and S. Yin On sequential commitment in the price-dependent newsvendor model European Journal of Operational Research 177 2 2007 939 968
8. D. Gupta, and W.L. Cooper Stochastic comparisons in production yield management Operations Research 53 2 2005 377 384
9. S. Karlin, and C.R. Carr Prices and optimal inventory policy Studies in Applied Probability and Management Science 1962 Stanford University Press Stanford, CA 159 172
10. M. Lariviere A note on probability distributions with increasing generalized failure rates Operations Research 54 3 2006 602 604
11. A.H.L. Lau, and H.S. Lau The effects of reducing demand uncertainty in a manufacturer-retailer channel for single-period products Computers and Operations Research 29 2002 1583 1602
12. Q. Li, and D. Atkins On the effect of demand randomness on a price/quantity setting firm IIE Transactions 37 12 2005 1143 1153
13. E.S. Mills Uncertainty and price theory Quarterly Journal of Economics 73 1 1959 116 130
14. N.C. Petruzzi, and M. Dada Pricing and the newsvendor problem: A review with extensions Operations Research 47 2 1999 183 194
15. E.L. Porteus Foundations of Stochastic Inventory Theory 2002 Stanford University Press
16. A. Ridder, E.A. van der Laan, and M. Salomon How larger demand variability may lead to lower costs in the newsvendor problem Operations Research 46 6 1998 934 936
17. M. Shaked, and J.G. Shanthikumar Stochastic Orders 2006 Springer New York
18. J.-S. Song The effect of leadtime uncertainty in a simple stochastic inventory model Management Science 40 5 1994 603 613
19. C.X. Wang, S. Webster, and N.C. Suresh Would a risk-averse newsvendor order less at a higher selling price? European Journal of Operational Research 196 2 2009 544 553
20. C.A. Yano, and S.M. Gilbert Coordinated pricing and production/ procurement decisions: A review A. Chakravarty, J. Eliashberg, Managing Business Interfaces: Marketing, Engineering and Manufacturing Perspectives 2003 Kluwer Academic Publishers Boston, MA
21. L. Yao, Y.F. Chen, and H. Yan The newsvendor problem with pricing: Extensions International Journal of Management Science and Engineering Management 1 1 2006 3 16