Solution Method of News Vendor Problem with Price Elasticity of Demand by Parametric Stochastic Programming

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this paper, we consider a newsvendor problem with price elasticity of probabilistic demand. The objective is to determine the optimal price that maximizes profits under various random demand fluctuations by using parametric stochastic programming. In this paper, we consider the product whose demand is sensitive to price and loses its value over time, and show an optimal pricing model and the solution method.

Original languageEnglish
Title of host publicationProceedings - 2019 8th International Congress on Advanced Applied Informatics, IIAI-AAI 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages781-784
Number of pages4
ISBN (Electronic)9781728126272
DOIs
Publication statusPublished - 2019 Jul
Event8th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2019 - Toyama, Japan
Duration: 2019 Jul 72019 Jul 11

Publication series

NameProceedings - 2019 8th International Congress on Advanced Applied Informatics, IIAI-AAI 2019

Conference

Conference8th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2019
CountryJapan
CityToyama
Period19/7/719/7/11

Keywords

  • newsvendor problem
  • optimal pricing
  • price elasticity of demand

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems
  • Information Systems and Management
  • Social Sciences (miscellaneous)

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