The capacitated newsboy problem with revenue sharing

Revisiting the newsboy problem–optimization with a little help from the airline industry

In a typical inventory planning problem with a life cycle of only one planning period we incur the cost of production per unit produced, profit per unit sold, loss per unit not sold, and lost revenue per unit ordered but not matched due to the lack of availability. The goal is to find the inventory level that maximizes the expected net profit. Textbooks often use the newsboy problem to illustra...

An Option-Revenue Sharing Coordination Contract with Price and Sales Effort Dependent Demand

This study proposes a novel option-revenue sharing coordination contract framework. In the proposed model, the retailer determines the number of order sales effort. The manufacturer sets the price of products for the wholesale strategy. The investigated supply chain problem analyzes the results of different strategies. In the proposed coordination contract problem, two types of games including ...

INVENTORY MODEL FOR DETERIORATING ITEMS WITH REVENUE SHARING ON PRESERVATION TECHNOLOGY INVESTMENT UNDER PRICE SENSITIVE STOCK DEPENDENT DEMAND

The objective of this research is to tackle the emerging problem of jointly determining theoptimal retail price, the replenishment cycle, and the cost of preservation technology investment from an integrated perspective among the supplier and the manufacturer. This paper deals an integrated single-manufacturer single-retailer supply chain model for deteriorating items under revenue sharing on p...

Consignment Contracts with Revenue Sharing for a Capacitated Retailer and Multiple Manufacturers

Two-stage stochastic programming model for capacitated complete star p-hub network with different fare classes of customers

In this paper, a stochastic programming approach is applied to the airline network revenue management problem. The airline network with the arc capacitated single hub location problem based on complete–star p-hub network is considered. We try to maximize the profit of the transportation company by choosing the best hub locations and network topology, applying revenue management techniques to al...