In this article, we propose a mathematical model of newsboy problem which assumes that the customer's buying willingness depends on the degrees of freshness of the goods, i.e., the buying willingness decreases as the degrees of freshness decreases. And, we also assume that the demand follows a Poisson distribution. Under these circumstances, we will find the optimal order quantity of goods and expected lost sales in the selling period such that the expected total profit is maximized.
Relation:
Journal of Information & Optimization Sciences 37(4), p.633-639
