The newsvendor problem with pricing decision provides an important vehicle for examining how operational problems interacts with marketing issues to influence decision-making at the firm level. This paper considers the newsvendor problem with pricing and its extensions. We try to answer two questions: (1) how to model the price-dependent stochastic demand and (2) how to derive the combined pric...

We consider a price-setting newsvendor problem with partial information. The newsvendor does not know the price-dependent probability distribution of demand, but is able to estimate lower and upper limits of the market size and consumer willingness-to-pay. The objective is to minimize the maximum loss in expected profit, or minimax regret. We derive closed-form expressions for optimal quantity ...

The newsvendor problem now has been extended into complicated models to meet the commerce pattern’s growing intricacy. For the requirement of outsourcing operation, supply chain management and cost-profit control, we need to develop practicable, potent and computeroperated approaches to resolve the newsvendor problems which the various costs and characteristic parameters of products are divers ...