Multi-product Newsvendor problem with dynamic pricing: a decision interpolation approximation

Laura Sprenkels, Zümbül Atan*, Ivo Adan

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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Abstract

In this paper we present an approximation for the finite horizon, finite inventory multi-product dynamic pricing problem. We consider both price- and stock-out- based substitutions. The computation time of the optimal solution grows exponentially in the number of products, while computation time of the proposed approximation is linear in the number of products. We compare the approximation with existing methods.

Original languageEnglish
Pages (from-to)699-716
Number of pages18
JournalOptimization Letters
Volume19
Issue number4
DOIs
Publication statusPublished - 4 Feb 2025

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Publisher Copyright: © The Author(s) 2025.

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