Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1142224 | Operations Research Letters | 2016 | 5 Pages |
Abstract
The newsvendor model assumes that demand in a period is independent of the discounted inventory in the previous period. In the presence of forward-buying consumers, discounted inventory in a period may reduce next period’s demand. We find that incorporating forward-buying leads to smaller order quantities and possibly lower salvage value.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Moutaz Khouja,