NDLI: Joint advertising and ordering strategies for perishable product with emergency ordering

Content Provider	IEEE Xplore Digital Library
Author	Tie Wang
Copyright Year	2009
Description	Author affiliation: School of Management, Shanghai University, 200444, China (Tie Wang)
Abstract	The emergency ordering plays an important role in the practical prouction and sale, and the newsvendor problem with advertising decision provides an important means to examine how operational problems interacts with marketing issues to influence decision-making at the firm level. When a newsvendor faces stochastic advertisement-sensitive demands, he has to make the advertising and inventory decisions before the demand is realized. In this paper, we combine the above two aspects to investigate the case in which advertising leads to increase in sales under general stochastic demand with emergency ordering. We assume the mean demand is strictly increasing and strictly concave in advertising premium and explore the optimal ordering and advertising decision's properties and their comparative statics with the ordering cost, emergency ordering cost, sale price and salvage value.
Starting Page	2673
Ending Page	2678
File Size	121027
Page Count	6
File Format	PDF
ISBN	9781424427222
DOI	10.1109/CCDC.2009.5195022
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2009-06-17
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Uncertainty Decision making Stochastic processes Marketing and Operations Interface Emergency Ordering Comparative Statics Investments Pricing Disaster management Cost function Marketing and sales Newsvendor Model with Advertising Virtual manufacturing Advertising
Content Type	Text
Resource Type	Article

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