17/06/2014
An efficient heuristic for the multi-product satiating newsboy problem
Avijit Khanra
Working Papers
Preference of satiation of a target performance over maximization of expected performance
in uncertain situations is well-documented in the economics literature. However, the newsboy
problem with satiation (of a prot target) objective has not received its due attention.
In the multi-product setting, solution methods available in the literature are inecient.
We developed an ecient heuristic to solve the problem. The heuristic decomposes the
multi-product problem into easily solvable single-product problems. We tested the heuristic
with a large number of test instances. The heuristic can be adopted to solve the \\target
assignment problem". We demonstrated it with some numerical examples.