دانلود رایگان مقاله اثرات طبقه بندی فهرست پایین فصل اخیر در مساله احتمالی یک دوره ای

abstract

The assumption of the newsvendor being able to satisfy demand as long as on-hand inventory is positive does not hold for a non-homogenous product. Consumers who do not find a unit of the product which satisfies their secondary features preferences may not purchase the product even though the newsvendor has positive on-hand inventory. This is likely to occur late in the season as inventory level declines. We solve a newsvendor problem in which the probability of purchase by consumers is increasing in on-hand inventory for any inventory level below that which is needed to have a complete assortment. We identify the sufficient optimality condition for the order quantity. We show that, unlike the case of inventory-dependent demand models in the literature, the optimal order quantity may decrease due to the assortment effect. We investigate two types of pre-end of season discounts, immediate all-units and delayed, as ways to mitigate the late season assortment effect and show that in some cases, they can increase the newsvendor’s profit and free up the shelf space for other products.

7 Conclusion

We developed a model in which the newsvendor sells a non-homogenous product due to variation in secondary features such as color, size, condition, etc. A consumer whose reservation price for a product satisfying her/his preferred secondary features is met buys the product if it is available. If the product is lacking the preferred secondary features, consumers’ utility from the product decreases. Thus, when on-hand inventory falls below the level needed for a complete assortment, i.e. all variations in secondary features are no longer available, there is a deceasing probability of a consumer finding the right product, which we refer to as the assortment effect.