Date of Original Version
In this paper, we review the contributions to date for analyzing the newsvendor problem. Our focus is on examining the specific extensions for analyzing this problem in the context of modeling customer demand, supplier costs, and the buyer risk profile. More specifically, we analyze the impact of market price, marketing effort, and stocking quantity on customer demand; how supplier prices can serve as a coordination mechanism in a supply chain setting; integrating alternative supplier pricing policies within the newsvendor framework; and how the buyer’s risk profile moderates the newsvendor order quantity decision. For each of these areas,we summarize the current literature and develop extensions. Finally, we also propose directions for future research.
Yan Qin, Ruoxuan Wang, Asoo J. Vakharia, Yuwen Chen, and Michelle M. Seref. "The Newsvendor Problem: Review and Directions for Future Research" European Journal of Operational Research 213.2 (2011): 361-374. Available online at http://dx.doi.org/10.1016/j.ejor.2010.11.024.
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NOTICE: This is the author’s version of a work that was accepted for publication in the European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Operational Research.