Retailer’s Optimal Ordering Decision Based on Cost Curve

DOI

10.2991/assehr.k.210806.022How to use a DOI?

Keywords

Newsboy model, Optimal order, Cost curve

Abstract

In newsboy model, the relationship between unit cost and order quantity of retailer is established, and the optimal decision of retailer is given. By analyzing the optimal decision of the retailer, it is found that the optimal order quantity of the retailer based on the cost curve may be larger, smaller or equal compared with the previous optimal decision under the newsboy model; compared with the influence of cost curve parameters on the optimal order quantity, the increase of every parameters leads to the increase of the optimal order quantity; the constant term has the least influence on the optimal order quantity; for the influence of the change of the first or second coefficient of the cost function on the optimal order quantity, the retailer can choose to pay attention to one of them because of the existence of the optimal order equilibrium point. The retailer should pay attention to the influence of the change of cost curve parameters on the optimal order quantity.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Heng LIU
PY  - 2021
DA  - 2021/08/09
TI  - Retailer’s Optimal Ordering Decision Based on Cost Curve
BT  - Proceedings of the 2021 5th International Seminar on Education, Management and Social Sciences (ISEMSS 2021)
PB  - Atlantis Press
SP  - 109
EP  - 113
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210806.022
DO  - 10.2991/assehr.k.210806.022
ID  - LIU2021
ER  -