Joint Advertising and Ordering Strategies for Perishable Product with Emergency Ordering
The emergency ordering plays an important role in the practical prouction and sale, and the newsvendor problem with advertising decision provides an important means to examine how operational problems interacts with marketing issues to influence decision-making at the firm level. When a newsvendor faces stochastic advertisementsensitive demands, he has to make the advertising and inventory decisions before the demand is realized. In this paper, we combine the above two aspects to investigate the case in which advertising leads to increase in sales under general stochastic demand with emergency ordering. We assume the mean demand is strictly increasing and strictly concave in advertising premium and explore the optimal ordering and advertising decisions properties and their comparative statics with the ordering cost, emergency ordering cost, sale price and salvage value.
Marketing and Operations Interface Emergency Ordering Newsvendor Model with Advertising Comparative Statics
Tie Wang
School of Management, Shanghai University, Shanghai 200444, School of Mathematics, Liaoning University, Shenyang 110036, China
国际会议
2009年中国控制与决策会议(2009 Chinese Control and Decision Conference)
广西桂林
英文
2673-2678
2009-06-17（万方平台首次上网日期，不代表论文的发表时间）