One-shot Decision Research Of Newsvendor Models For Innovative Products With Budget Constraint

Along with the advance of science and technology, upgrading of products is more and more frequent, product life cycle have been shortened day by day, consumers’demand of product differentiation is increasingly outstanding, which has made more and more products have the seasonal characteristic on the market. In this business environment, newsvendor models for innovative products received extensive attention of many experts and scholars. Because the product is new,there is no historical demand data to predict demand accurately; because the life of products is shorter and shorter, so there is only one chance to determine the product quantity before the season.Today’s social and economic activities,similar to the development of new products, only one decision opportunity examples can be seen everywhere. For a one-shot decision problem, some scholars proposed one-shot decision theory, and received extensive attention in academic circles.Scholars use one-shot decision theory to analyze the newsvendor models for innovative products, however, the existing research only considers the ordering optimum unconstrained optimization problem, in fact, retailers are often restricted by various conditions such as the total amount of funds, under these constraints, the one-shot decision results may not be feasible. Therefore, one-shot decision research of newsvendor models for innovative products under the constraint condition, has the universal practical significance.This paper mainly uses the one-shot decision theory to research the newsvendor models for innovative products with budget constraints. First, one-short decision problem with constraint conditions is proposed and points out the differences between focus points of the one-short decision problem with constraint conditions and focus points of the one-short decision problem without constraints. Then, the general solution of optimal alternatives and the optimal focus points in the one-shot decision of the newsvendor models for innovative products with budget constraints are given, and proves it mathematically. Finally, a numerical example is used to make a specific analysis, illustrating the one-shot decision process of the newsvendor models for innovative products with budget constraints.