TY - JOUR ID - 3923 TI - Price Discount and Stochastic Initial Inventory in the Newsboy Problem JO - Journal of Industrial and Systems Engineering JA - JISE LA - en SN - 1735-8272 AU - Haji, Maryam AU - Haji, Rasoul AU - Darabi, Houshang AD - 1Dept. of Mech. and Ind. Eng. University of Illinois at Chicago, Chicago, IL, 60607, USA AD - Dept. of Ind. Eng. Sharif University of Technology, Tehran, Iran AD - Dept. of Mech. and Ind. Eng. University of Illinois at Chicago, Chicago, IL, 60607, USA Y1 - 2007 PY - 2007 VL - 1 IS - 2 SP - 130 EP - 138 KW - Stochastic initial inventory KW - Newsboy problem KW - Inventory management KW - Supplier discount DO - N2 - Many extension of the newsboy problem have been solved in the literature. One of those extensions solves a newsboy problem with stochastic initial inventory, earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two pervious extensions. In this paper we consider a newsboy problem in which the suppliers offer quantity discount and the initial inventory at the beginning of the period is a random variable. We obtain the optimal value of the order quantity which maximizes the total profit and then present the results for some practical distributions of both random variables, demand and initial inventory. UR - https://www.jise.ir/article_3923.html L1 - https://www.jise.ir/article_3923_32fd0b80aa077d13466aee54f11a6201.pdf ER -