| Article ID: | iaor20102890 |
| Volume: | 36 |
| Issue: | 5 |
| Start Page Number: | 569 |
| End Page Number: | 573 |
| Publication Date: | Sep 2008 |
| Journal: | Operations Research Letters |
| Authors: | Dada Maqbool, Hu Qiaohai |
| Keywords: | newsboy problem |
If the cost of borrowing is not too high, the capital-constrained newsvendor borrows funds to procure an amount that is less than would be ideal. The lender charges an interest rate that decreases in the newsvendor's equity. Furthermore, we derived a non-linear loan schedule that coordinates the channel.