The newsvendor problem: Review and directions for future research
By Yan Qin, Ruoxuan Wang, Asoo J. Vakharia, Yuwen Chen, Michelle M. H. Şeref. European Journal of Operational Research, 2011
499 citations recorded by the source corpus.
In this paper, we review the contributions to date for analyzing the newsvendor problem. Our focus is on examining the specific extensions for analyzing this problem in the context of modeling customer demand, supplier costs, and the buyer risk profile. More specifically, we analyze the impact of market price, marketing effort, and stocking quantity on customer demand; how supplier prices can serve as a coordination mechanism in a supply chain setting; integrating alternative supplier pricing policies within the newsvendor framework; and how the buyer's risk profile moderates the newsvendor order quantity decision. For each of these areas, we summarize the current literature and develop extensions. Finally, we also propose directions for future research.
Subfields: Industrial and Manufacturing Engineering, Management Information Systems, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/434a8c21d5bfa6be1dca3c708c020a988741bd0b
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In Management Information Systems
In Strategy and Management
Citations in the corpus
- Optimal electric vehicle production strategy under subsidy and battery recycling (2017, methodology): “The newsvendor model, which was pioneered by Edgeworth (1888), has been extensively studied in the literature (Babich, 2010; Cohen et al., 2016; Krass et al., 2013; Qin et al., 2011).”
- A new inventory model for cold items that considers costs and emissions (2014, background): “The inventory management problem is a well-defined, wellstudied problem in the literature and interested readers are referred to the following review papers (Bijvank and Vis, 2011; Karaesmen et al., 2011; Khan et al., 2011; Li, 2010; Paterson et al., 2011; Qin et al., 2011).”
- Stochastic Stackelberg Equilibria with Applications to Time Dependent Newsvendor Models (2013, unknown): “δ (Rt − S) min[Dt, qt]− (wt − S)qtdt ] (21) When the manufacturer has a fixed production cost per unit M , the manufacturer will get an expected profit”