Abstract
This paper studied optimal order quantity and advertising level of newsvendor. According to the concepts of unit opportunity shortage penalty and unit opportunity expected excess loss, analyzed the relationship between optimal order quantity and the loss aversion coefficient. On this basis, from two aspects of the impact of advertising on the market, we studied the retailer optimal advertising and order quantity decision problems, got the optimal level of advertising and the optimal order quantity, finally examples have shown the impacts of advertising on the retailer.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of u- and e- Service, Science and Technology
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
