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exogenous price decline

RAIRO - Operations Research (1)

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1 results

Newsboy Problem: Viability of Optimal Initial Selling Price andOrdering Policies in the Presence of Exogenous Price Decline and Random LeadTime
Ningombam Sanjib Meitei, Snigdha Banerjee
Journal:

RAIRO - Operations Research / Volume 47 / Issue 4 / September 2013

Published online by Cambridge University Press:

29 November 2013, pp. 371-394

Print publication:

September 2013
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Analysis of empirical sales data lead us to consider newsboy model for four practicalmarket conditions arising from the presence/absence of stochastic lead time and exogenouslinear temporal decline in selling price when distribution of the stochastic demanddepends upon initial selling price. Viability of the solutions is discussed for threestrategies of obtaining optimal initial selling price and/or ordering quantity. Numericalstudies are conducted to assess the effects of lead time and price decline.