Joint inventory model on ordering and pricing: An extension for the newsboy model

As a study foundation of supply chain coordination, the newsboy model and its extensions have attracted more and more scholars in the recent years. This paper investigates the jointed inventory problem on ordering and pricing for a short‐life‐cycle product. For a product characterised by a single manufacturing cycle and two selling periods, we depict the jointed decision problem from the view of the centralised system with a stochastic dynamic programming model and develop a jointed decision method for its ordering and pricing. Then, we design an iterative search algorithm to find the optimal decision vectors. Finally, we analyse the characteristics of the decision by running simulation examples.