A Note on the Newsboy Problem with an Emergency Supply Option

Moutaz J. Khouja

82 citations0/0 files storedJournal of the Operational Research Society

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Supply Chain and Inventory Management Sustainable Supply Chain Management Facility Location and Emergency Management

Abstract

In this note, we solve a newsboy problem with an emergency supply option. We solve the new problem with the objectives of maximizing expected profit and maximizing the probability of achieving a target profit. The new optimal order quantity is smaller than the optimal order quantity without emergency supply.

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References

1993The Distribution Free Newsboy Problem: Review and Extensions 1980The Newsboy Problem under Alternative Optimization Objectives 1973Inventory models with a mixture of backorders and lost sales 1988A Continuous Review Model for an Inventory System with Two Supply Modes 1994Distribution Free Procedures for Some Inventory Models 1995The newsboy problem under progressive multiple discounts

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2003Linking advertising and quantity decisions in the single-period inventory model 2013The effect of supply uncertainty in price-setting newsvendor models 2008Inventory and pricing decisions in a single-period problem involving risky supply 1996A two-item newsboy problem with substitutability 2014The single period inventory model under dual sourcing and product carbon footprint constraint 2015Optimal decisions for the loss-averse newsvendor problem under CVaR 2017Pre-positioning of relief inventories for non-profit organizations: a newsvendor approach

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