Author ORCID Identifier

http://orcid.org/0000-0003-0821-8787 : Guoqing Zhang

Document Type

Article

Publication Date

11-2010

Publication Title

International Journal of Production Economics

Volume

128

Issue

1

First Page

322

Last Page

331

DOI

10.1016/j.ijpe.2010.07.033

Keywords

Newsvendor, Pricing, Discount, Acquisition, Uncertain demand

Abstract

We consider the joint acquisition and pricing problem where the retailer sells multiple products with uncertain demands and the suppliers provide all unit quantity discounts.The problem is to determine the optimal acquisition quantities and selling prices so as to maximize the retailer’s expected profit, subject to a budget constraint. This is the first extension to consider supplier discounts in the constrained multi-product newsvendor pricing problem. We establish a mixed integer nonlinear programming (MINLP) model to formulate the problem, and developaLagrangian based solution approach.Computational results for the test problems involving up to thousand products are reported, which show that the Lagrangian based approach can obtain high-quality solutions in a very short time.

Funding Reference Number

NSERC DG 298482

Comments

Recommended citation:

Shi, J., & Zhang, G. (2010). Multi-product budget-constrained acquisition and pricing with uncertain demand and supplier quantity discounts. International Journal of Production Economics, 128(1), 322-331.

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

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