Optimal wholesale price for producer in supply chain under newsboy environment

The lifecycles of technology‐based products are rapidly becoming shorter through endless technological innovation. As a result, researchers and practitioners paid much attention on operations management issues for newsvendor‐type products. However, due to the globalisation of market and keen competition, optimising supply chain decisions becomes very important and many researchers have turned their attention to the supply chain management for newsvendor‐type products. In this paper, a model for supply chain with one producer and multiple retailers is considered. The retailers order quantities of the product based on newsvendor rule and the producer adjusts the production run accordingly. The purpose of the developed model is to find the optimal wholesale price which maximises the expected profit of the producer.