The newsvendor problem with advertising: an overview with extensions

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26210%2F17%3APU139945" target="_blank" >RIV/00216305:26210/17:PU139945 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/70883521:28140/16:43874989 RIV/70883521:28140/17:43874989

Výsledek na webu

<a href="https://link.springer.com/article/10.1007/s11846-016-0204-1" target="_blank" >https://link.springer.com/article/10.1007/s11846-016-0204-1</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s11846-016-0204-1" target="_blank" >10.1007/s11846-016-0204-1</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The newsvendor problem with advertising: an overview with extensions

Popis výsledku v původním jazyce

The original generalization of a newsvendor problem is formulated, its theoretical properties are studied, further analysed and illustrated by computational cases. The effect of advertising on sales has been the subject of recent studies as an important aspect in many demand-based problems. Herein, we deal with the newsvendor problem, due to its simple structure, as a suitable tool for illustrating how facets of marketing may affect decision-making concerning operational problems. In the setting presented, the newsvendor is faced with advertising-sensitive stochastic demand, where a demand-related random element comprises an advertising decision of the multiplicative or additive form. We assume that a suitable advertising strategy results in increased sales. Two advertising response functions are considered, these being concave downward and S-shaped. We review and extend the existing results relating to the newsvendor problem with marketing effects, which mostly pertain to the concave function. These are generalized by defining the S-shaped function, and some original insights into the effect of advertising are given. We establish that the optimal advertising expenditure for the multiplicative case is always less than or equal to the optimal amount in the equivalent deterministic model while it is always equal in the additive case. We finally illustrate the results that are obtained by providing numerical examples involving various advertising response functions, as well as management-related interpretations.

Název v anglickém jazyce

The newsvendor problem with advertising: an overview with extensions

Popis výsledku anglicky

The original generalization of a newsvendor problem is formulated, its theoretical properties are studied, further analysed and illustrated by computational cases. The effect of advertising on sales has been the subject of recent studies as an important aspect in many demand-based problems. Herein, we deal with the newsvendor problem, due to its simple structure, as a suitable tool for illustrating how facets of marketing may affect decision-making concerning operational problems. In the setting presented, the newsvendor is faced with advertising-sensitive stochastic demand, where a demand-related random element comprises an advertising decision of the multiplicative or additive form. We assume that a suitable advertising strategy results in increased sales. Two advertising response functions are considered, these being concave downward and S-shaped. We review and extend the existing results relating to the newsvendor problem with marketing effects, which mostly pertain to the concave function. These are generalized by defining the S-shaped function, and some original insights into the effect of advertising are given. We establish that the optimal advertising expenditure for the multiplicative case is always less than or equal to the optimal amount in the equivalent deterministic model while it is always equal in the additive case. We finally illustrate the results that are obtained by providing numerical examples involving various advertising response functions, as well as management-related interpretations.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Review of Managerial Science

ISSN

1863-6683

e-ISSN

1863-6691

Svazek periodika

11

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

DE - Spolková republika Německo

Počet stran výsledku

21

Strana od-do

767-787

Kód UT WoS článku

000408430600002

EID výsledku v databázi Scopus

2-s2.0-84978906494