Article ID: | iaor20043446 |
Country: | China |
Volume: | 23 |
Issue: | 6 |
Start Page Number: | 63 |
End Page Number: | 68 |
Publication Date: | Jun 2003 |
Journal: | Systems Engineering Theory & Practice |
Authors: | Yan Houmin, Chen Jian, Cai Lianqiao |
Keywords: | programming: dynamic |
In this paper we develop a general profit maximization model for single-period two-product substitution problem, and show that it is concave and sub-modular. Then we obtain the optimal condition for order quantity, which is similar to the solution of the newsboy model.