Title

The Multi-Product Newsvendor Problem: Review, Extension, and Directions for Future Research

Document Type

Contribution to Book

Publication Date

2012

Publication Title

Handbook of Newsvendor Problems: Models, Extensions and Applications

DOI

10.1007/978-1-4614-3600-3

Abstract

In this paper, we review the contributions to date for the multi-product newsvendor problem (MPNP). Our focus is on the current literature concerning the mathematical models and the solution methods for the multi-item newsvendor problems with single and multiple constraints, as well as the effect of substitute and complementary products on the stocking decisions and expected profits. We present some extensions to the current work for a stylized setting assuming two products and conclude with directions for future reference.