Article ID: | iaor200166 |
Country: | United Kingdom |
Volume: | 27 |
Issue: | 1 |
Start Page Number: | 129 |
End Page Number: | 134 |
Publication Date: | Feb 1999 |
Journal: | OMEGA |
Authors: | Casimir Rommert J. |
Keywords: | production: JIT |
Three variations of the newsboy problem, the newsboy problem with fixed container size, the problem of the just-in-time newsboy and the newsboy problem with demand-dependent pricing are analyzed with respect to the value of information. This is determined by comparing the profit of a blind newsboy, who only knows the demand distribution, with the profit of a clear-sighted newsboy, who can accurately predict sales. It is shown that the disadvantage of the blind newsboy is diminished by just-in-time supplies or demand-dependent pricing.