The Newsvendor Problem with Retail Competition

摘要：

This paper considers the newsvendor problem with two competing retailers who face price-sensitive and uncertain demand. There are two questions: (1) how to model the price-dependent stochastic demand and retail competition and (2) how to derive the combined pricing and inventory solutions. In order to answer above problems, we adopt multiplicative demand function and model the expected demand as an exponential function of both retailers’ prices, then it is concluded that each retailer’s best response price is unique and independent of the competitor’s price decision, and each retailer’s best response stocking factor is uniquely determined when the demand distribution satisfying the IFR property.

关键词： Retail competition Price-dependent demand Newsvendor problem

作者: Yushuang Liu Pengfei Yan Jihui Zhang

作者单位: School of Mathematics andPhysics, Qingdao University of Science and Technology, Qingdao 266061 Institute of Complexity Science, Qingdao University, Qingdao, 266071

会议类型: 国际会议

会议名称: The 24th Chinese Control and Decision Conference (第24届中国控制与决策学术年会 2012 CCDC)

会议地点: 太原

会议语种:英文

页码: 3448-3452

在线出版日期: 2012-05-23（万方平台首次上网日期，不代表论文的发表时间）