Multi-product newsboy problem with satiation objective

02/01/2014

Multi-product newsboy problem with satiation objective

Avijit Khanra

Working Papers

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Meeting the prot target is often preferred over maximizing expected prot in uncertain
business environments. Research into the newsboy problem with satiation objective started
quite early. However, the progress has been slow, particularly in the multi-product setting.
We study the general multi-product newsboy problem with satiation objective. A discrete
formulation is adopted. Computational methods for evaluating and maximizing the satiation
probability (i.e., probability of meeting the prot target) are developed. Diculties associated
with the conventional continuous formulation are also discussed.

IIMA