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    MITESD 273JF09 Lec06

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    SahilJain
    This document discusses pricing models for a newsboy problem where demand is uncertain. It describes additive and multiplicative demand models where demand decreases stochastically with price increases. For the additive demand model, it defines a "riskless riskless price" when demand is deterministic. It also covers a multiplicative demand model and defines the "riskless price" or "deterministic price" for the case when demand is deterministic rather than stochastic.

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    MITESD 273JF09 Lec06

    Uploaded by

    SahilJain
    24 views10 pages
    This document discusses pricing models for a newsboy problem where demand is uncertain. It describes additive and multiplicative demand models where demand decreases stochastically with price increases. For the additive demand model, it defines a "riskless riskless price" when demand is deterministic. It also covers a multiplicative demand model and defines the "riskless price" or "deterministic price" for the case when demand is deterministic rather than stochastic.

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    MITESD_273JF09_lec06

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    This document discusses pricing models for a newsboy problem where demand is uncertain. It describes additive and multiplicative demand models where demand decreases stochastically with price increases. For the additive demand model, it defines a "riskless riskless price" when demand is deterministic. It also covers a multiplicative demand model and defines the "riskless price" or "deterministic price" for the case when demand is deterministic rather than stochastic.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    24 views10 pages

    MITESD 273JF09 Lec06

    Uploaded by

    SahilJain
    This document discusses pricing models for a newsboy problem where demand is uncertain. It describes additive and multiplicative demand models where demand decreases stochastically with price increases. For the additive demand model, it defines a "riskless riskless price" when demand is deterministic. It also covers a multiplicative demand model and defines the "riskless price" or "deterministic price" for the case when demand is deterministic rather than stochastic.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 10

    Newsboy Model with Pricing

    David Simchi-Levi Operations Research Center

    Newsboy Problem
    c
    Image by MIT OpenCourseWare.

    Price Depending Demand

    i.e., demand decreases stochastically with price

    Additive Demand

    Additive Demand (continued)

    Deterministic Demand

    Riskless Riskless Price Price or Deterministic Deterministic Price Price

    Multiplicative Demand

    Multiplicative Demand (continued)

    Deterministic Demand

    Riskless Price or Deterministic Price

    MIT OpenCourseWare http://ocw.mit.edu

    ESD.273J / 1.270J Logistics and Supply Chain Management


    Fall 2009

    For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.

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