Newsboy Model With Supplier's Free Shipping Quantity

Newsboy problem is a batch model of the classical economic. Free shipping with conditions is very popular in recent years.In a supply chain with one supplier and one retailer, we discuss some problems, combining these two models together. Four main chapters are ineluded as follows:In the first chapter, we introduce some description and research status of the newsboy problem, the minimum free shipping and supply chain coordination problem, and then outline the main findings of this paper.In the second chapter, we describe two classical newsboy models which provide a theoretical basis for the model behind.In the third chapter, we establish a newboy model with supplier's free shipping quantity, and examine the optimal order strategy of a retailer when the supplier offers free shipping. And we establish optimal model to compute the least free shipping quantity from the supplier's perspective in a supply chain.In the fourth chapter, we mainly consider the coordination of supply chain. We discuss that the supplier and the retailer develop a minimum order quantity for free shipping together, so that it can make the profit of the entire supply chain maximize.