Publication detail

A Note on the Newsvendor Problem with Pricing

HRABEC, D. POPELA, P. NOVOTNÝ, J. HAUGEN, K. OLSTAD, A.

English title

A Note on the Newsvendor Problem with Pricing

Type

Paper in proceedings (conference paper)

Language

en

Original abstract

The main purpose of the paper is to present a specific case of dynamic pricing for the newsvendor problem. Firstly, a short overview of the newsvendor problem is given together with references to selected literature and remarks to its applicability. Then, dynamic pricing principles are discussed together with references to a decision dependent randomness case in stochastic programming. The dynamic pricing problem deals with determination of selling prices over time for a product whose demand is random and whose supply is fixed. We approach this problem by formulating the newsvendor problem, which is introduced as a single period problem in our case. We focus on specific features of the demand function assuming a decision dependent uniform distribution. We assume that its support size linearly decreases with the increase of the price. Under such assumptions, the model has suitable computational features related to the expectation of the objective function. In addition, a possibility to increase the profit by change of the price may appear. The model formulation allows us to use the MAPLE software for symbolic computations and visualization of results. The test results for the selected data set are visualized at the end of the paper.

Keywords in English

stochastic programming, newsvendor problem, dynamic pricing, MAPLE

Released

2012-06-27

Publisher

VUT

Location

Brno

ISBN

978-80-214-4540-6

ISSN

1803-3814

Book

18th International Conference of Soft Computing, MENDEL 2012 (id 19255)

Journal

Mendel Journal series

Volume

2012

Number

1

Pages from–to

410–415

Pages count

6

BIBTEX


@inproceedings{BUT93317,
  author="Dušan {Hrabec} and Pavel {Popela} and Jan {Novotný} and Kjetil Kare {Haugen} and Asmund {Olstad}",
  title="A Note on the Newsvendor Problem with Pricing",
  booktitle="18th International Conference of Soft Computing, MENDEL 2012 (id 19255)",
  year="2012",
  series="2012",
  journal="Mendel Journal series",
  volume="2012",
  number="1",
  pages="410--415",
  publisher="VUT",
  address="Brno",
  isbn="978-80-214-4540-6",
  issn="1803-3814"
}