Multi-product newsboy problem with satiation objective

Abstract

Meeting the pro t target is often preferred over maximizing expected pro t in uncertain business environments. Research into the newsboy problem with satiation objective started quite early. However, the progress has been slow, particularly in the multi-product setting. We study the general multi-product newsboy problem with satiation objective. A discrete formulation is adopted. Computational methods for evaluating and maximizing the satiation probability (i.e., probability of meeting the pro t target) are developed. Di culties associated with the conventional continuous formulation are also discussed.