This paper investigates a portfolio approach to multi-product newsboy problem with budget constraint, in which the procurement strategy for each newsboy product is designed as portfolio contract. A portfolio contract consists of a fixed-price contract and an option contract. We model the problem as a profit-maximization model, and propose an efficient solution procedure after investigating the ...

We introduce a technique called Concave, Adaptive Value Estimation (CAVE) to approximate recourse functions found in stochastic programs. CAVE constructs a sequence of concave (or convex) piecewise-linear approximations using sample gradients of the recourse function at di erent points in the domain. The result is a nonlinear approximation that is more responsive than traditional stochastic qua...

The multi-item newsboy problem is used to determine the value of two types of incomplete information, global information and product-mix information. It is shown that this value depends on the number of products, the existence of a budget restriction and the degree of substitutability. ? 2002 Elsevier Science Ltd. All rights reserved.

Consider a category of product variants distinguished by some attribute such as color or flavor. A retailer must construct an assortment for the category, i.e., select a subset variants to stock and determine purchase quantities for each offered variant. We analyze this problem using a multinomial logit model to describe the consumer choice process and a newsboy model to represent the retailer’...

A multi-product newsboy problem with uncertain demand and uncertain storage space is investigated under a warehousing chance constraint. It is assumed that indeterminacy may appear in demand and storage space due to rough estimation of their distributions by decision-maker. Uncertainty theory provides a new tool to deal with the human uncertainty. We develop an uncertain expected value programm...