The classic newsboy problem assumes the market demand to be a random variable. However, when the decision maker wants to expand the market share, he has to provide a subjective estimate of new market demand distribution due to the lack of historical data. Thus, randomness and uncertainty simultaneously appear in a newsboy problem. The aim of this work is to extend the analysis of the classic ne...

Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers off...

The newsboy problem is a well-known operations research model. Its various extensions have been applied to scheduling and evaluating advanced orders in manufacturing, retail and service industries. This paper focuses on a dynamic, continuous-time generalization of the single period newsboy problem. Similar to the classical newsboy problem, the model may represent the inventory of an item that b...

In this paper we study the standard newsboy problem, but under two new assumptions when compared to the existing literature. First, we assume that the wholesaler sets the wholesale price optimally, and in doing so, takes into account the salvage value at which the newsboy can return unsold items to the wholesaler. Second, we assume that the salvage value is a choice variable of the newsboy, and...

The newsboy problem is a well-known operations research model. Its various extensions have been applied to managing capacity and evaluating advanced orders in manufacturing, retail and service industries. This paper focuses on a dynamic, continuous-time generalization of the single-period newsboy problem. The problem is characterized by a number of the newsboys whose operations are organized an...

Advertising is very important for the newsboy problem because the shelf-life of the newsboy product is short and advertisingmay increase sales to avoid overstocking. In this paper, models to study the effect of advertising are developed for the distribution-free newsboy problem where only the mean and variance of the demand are known. As in Khouja and Robbins (2003), it is assumed that the mean...

Let us start our discussion with a famous textbook example: the newsboy problem. The story goes like this. Every morning a newsboy has to decide how many newspapers to buy from a newspaper publisher. Let us assume that the publisher sells the newspaper to the boy at the price of $2 each paper, and the boy then sells the newspaper along the street at the price of $5 per copy. In the end of the d...