The newsvendor problem with barter exchange

doi:10.1016/j.omega.2019.102149

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	The newsvendor problem with barter exchange
	Hua, Guowei 1; Zhang, Yi 2; Cheng, T. C. E.3; Wang, Shouyang 4; Zhang, Juliang 1
	2020-04-01
发表期刊	OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
ISSN	0305-0483
卷号	92 页码:9
摘要	Barter exchange, as an alternative to move distressed inventory, has become increasingly popular in business. Many companies barter their unsold product for the product they need via barter exchange platforms at full prices. In this paper we consider the newsvendor problem with the barter exchange option. A retailer (the newsvendor) facing stochastic demand not only sells its product, but also buys other product that it needs from the market. It either trades its unsold product for the product it needs on a barter platform or disposes of its unsold product at discounted prices at the end of the selling season like in the classical newsvendor model. We derive the retailer's optimal order quantity, then analytically and numerically examine the impacts of barter on the retailer's inventory decisions and profit. We find that barter exchange can help the retailer to manage demand uncertainty and improve profit. The optimal order quantity decreases with barter commission and barter uncertainty, while increases with demand uncertainty and the value of the product that the retailer needs. Barter is more advantageous with lower barter commission, larger demand uncertainty, lower barter uncertainty, and higher value of the product it needs. (C) 2019 Published by Elsevier Ltd.
关键词	Inventory management Newsvendor problem Barter exchange Order quantity Stochastic demand
DOI	10.1016/j.omega.2019.102149
收录类别	SCI
语种	英语
资助项目	National Natural Science Foundation of China (NSFC)[71831001] ; Beijing Philosophy and Social Science Foundation[13JGB042]
WOS研究方向	Business & Economics ; Operations Research & Management Science
WOS类目	Management ; Operations Research & Management Science
WOS记录号	WOS:000510947600005
出版者	PERGAMON-ELSEVIER SCIENCE LTD
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/50775
专题	中国科学院数学与系统科学研究院
通讯作者	Hua, Guowei
作者单位	1.Beijing Jiaotong Univ, Sch Econ & Management, Beijing 100044, Peoples R China 2.Beijing Wuzi Univ, Sch Logist, Beijing 100049, Peoples R China 3.Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Hung Hom, Kowloon, Hong Kong, Peoples R China 4.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China
推荐引用方式 GB/T 7714	Hua, Guowei,Zhang, Yi,Cheng, T. C. E.,et al. The newsvendor problem with barter exchange[J]. OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE,2020,92:9.
APA	Hua, Guowei,Zhang, Yi,Cheng, T. C. E.,Wang, Shouyang,&Zhang, Juliang.(2020).The newsvendor problem with barter exchange.OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE,92,9.
MLA	Hua, Guowei,et al."The newsvendor problem with barter exchange".OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE 92(2020):9.