The Newsvendor Problem with Fast Moving Items and a Compound Poisson Price Dependent Demand

摘要

We consider a single period single item inventory system when the demand is a compound Poisson process with price dependent intensity and continuous batch size distribution with known mean and variance, and the mean of the demand is large enough. Equations for retail price maximizing the expected profit under optimal order quantity are obtained and approximate solution is proposed. Approximate distribution of the large order's selling time is found and results of testing procedures are given.