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Advertising and Order Quantity Decision Based on the Newsvendor Model

초록

영어

This paper studied optimal order quantity and advertising level of newsvendor. According to the concepts of unit opportunity shortage penalty and unit opportunity expected excess loss, analyzed the relationship between optimal order quantity and the loss aversion coefficient. On this basis, from two aspects of the impact of advertising on the market, we studied the retailer optimal advertising and order quantity decision problems, got the optimal level of advertising and the optimal order quantity, finally examples have shown the impacts of advertising on the retailer.

목차

Abstract
 1. Introduction
 2. Model Framework
 3. Loss Aversion Newsvendor Model without Shortage Penalty
 4. Loss Aversion Newsvendor Model with Shortage Penalty
 5. Newsvendor Optimal Ordering and Advertising Decision Model
  5.1. Advertising Increase the Average of Demand, but does not Change the Variance
  5.2. Advertising Increase the Average of Demand also Change the Variance, but the Coefficient of Variation does not Change
 6. Model Simulation
 7. Summary
 References

저자정보

  • Jian Tan School of Management Science and Project Management, Guizhou University of Finance and Economics, Guizhou 550025, China

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