dc.contributor.authorChua, Geoffrey Bryan Ang
dc.contributor.authorLiu, Yan
dc.date.accessioned2015-08-27T08:37:42Z
dc.date.available2015-08-27T08:37:42Z
dc.date.copyright2015en_US
dc.date.issued2015
dc.identifier.citationChua, G. B. A., & Liu, Y. (2015). On the effect of demand randomness on inventory, pricing and profit. Operations Research Letters, 43(5), 514-518. doi:10.1016/j.orl.2015.07.007en_US
dc.identifier.issn0167-6377en_US
dc.identifier.urihttp://hdl.handle.net/10220/38534
dc.description.abstractWe consider a stocking-factor-elasticity approach for pricing newsvendor facing multiplicative demand uncertainty with lost sales. For a class of iso-elastic demand curves, we prove that optimal order quantity decreases in demand uncertainty for zero salvage value. This contrasts with fixed-price newsvendor results which depend on the critical ratio. Numerical tests show that optimal order quantity increases in demand uncertainty for high salvage value, low marginal cost, and low price-elasticity. We also report results on optimal price, service level, and profit.en_US
dc.language.isoenen_US
dc.relation.ispartofseriesOperations research lettersen_US
dc.rights© 2015 Elsevier B.V. This is the author created version of a work that has been peer reviewed and accepted for publication by Operations Research Letters, Elsevier B.V. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1016/j.orl.2015.07.007].en_US
dc.subjectDRNTU::Business::Operations management
dc.subjectDemand Randomness
dc.subjectPricing Newsvendor
dc.titleOn the effect of demand randomness on inventory, pricing and profiten_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.identifier.doihttp://dx.doi.org/10.1016/j.orl.2015.07.007
dc.description.versionAccepted versionen_US


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