Article ID: | iaor19972244 |
Country: | United Kingdom |
Volume: | 47 |
Issue: | 12 |
Start Page Number: | 1530 |
End Page Number: | 1534 |
Publication Date: | Dec 1996 |
Journal: | Journal of the Operational Research Society |
Authors: | Khouja Moutaz |
Keywords: | newsboy problem |
In this note, the authors solve a newsboy problem with an emergency supply option. They solve the new problem with the objectives of maximizing expected profit and maximizing the probablity of achieving a target profit. The new optimal order quantity is smaller than the optimal order quantity without emergency supply.