Title :
Newsvendor Model with Re-Distributed Profits
Author :
Wen, Jianning ; Li, Zehui
Author_Institution :
Sch. of Math. & Stat., Lanzhou Univ., Lanzhou
Abstract :
In this paper, we study the newsvendor model with profit re-distribution. It is different from classical model that sale process is distinguished normal sale and promotion stages. Vendor can select to sales promotion for increasing their return when real demand is lacking. We get two mathematical expressions of traditional optimization order quantity q* and new optimization market size N*. At the some degree, we also discuss the effect of (q*,N*) as some parameter changes.
Keywords :
marketing; optimisation; profitability; mathematical expressions; newsvendor model; optimization market; redistributed profits; Costs; Density functional theory; Distribution functions; Marketing and sales; Mathematical model; Mathematics; Pricing; Promotion - marketing; Random variables; Statistics;
Conference_Titel :
Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on
Conference_Location :
Dalian
Print_ISBN :
978-1-4244-2107-7
Electronic_ISBN :
978-1-4244-2108-4
DOI :
10.1109/WiCom.2008.1509