One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint
Joint Authors
Zhang, L. L.
Yang, Y.
Cai, J. Q.
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-03-04
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
One-way substitution means that when low-end brand goods are sold out, high-end brand goods can be offered to consumers as substitute goods, but not the opposite.
In realistic economic activity, “shortage of funds” is a common practical problem for the retailer in making order decision.
This paper proposes a nonlinear optimization model with the retailer’s budget to study the optimal order quantities and substitution discount for two one-way substitution products under a stochastic demand scenario, and the objective is to maximize the retailer’s revenue.
We solve the model mainly according to the Karush–Kuhn–Tucker (KKT) theorem and present the conditions of optimal decisions.
Finally, through the numerical study, we analyze the influence of the budget constraint and other parameters on the optimal solutions.
American Psychological Association (APA)
Zhang, L. L.& Yang, Y.& Cai, J. Q.. 2020. One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-9.
https://search.emarefa.net/detail/BIM-1201524
Modern Language Association (MLA)
Zhang, L. L.…[et al.]. One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint. Mathematical Problems in Engineering No. 2020 (2020), pp.1-9.
https://search.emarefa.net/detail/BIM-1201524
American Medical Association (AMA)
Zhang, L. L.& Yang, Y.& Cai, J. Q.. One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-9.
https://search.emarefa.net/detail/BIM-1201524
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1201524