The newsvendor problem with advertising
The classic newsvendor problem is to make a single-period procurement decision of a single product under stochastic demands.The newsvendor problem with advertising decision provides an important means to examine how operational problems interacts with marketing issues to influence decisionmaking at the firm level.When a newsvendor faces stochastic advertisement-sensitive demands,he has to make the advertising and inventory decisions before the demand is realized.In this paper,we investigate the case in which advertising leads to in creasing in sales under stochastic additive demand.We assume the mean demand is strictly increasing and strictly concave in advertising premium and explore: (1) the optimal solutions properties and (2) the comparative statics of parameter changes.
marketing/operations interface inventory and pricing newsvendor with advertising comparative statics
Tie Wang
School of Management and School of Mathematics Shanghai University and Liaoning university Shanghai and Shenyang,China
国际会议
北京
英文
2008-10-12（万方平台首次上网日期，不代表论文的发表时间）