Analysis On Newsboy Problem Of Returning And Swap Products Based On Newsvendor

In today's increasingly competitive marketing environment, consumers' demands are diverse and personal, and their service requests become higher and higher. Retailers must create more consuming models, in order to boost consumption and increase their profit.It was found that some newsvendors create two sales modes: returning and swap products with time limitation and old-for-new service without time limitation, in order to prompt consumers purchase. The sales modes are win-win both newsvendor and consumer, so we can expand them to other industries. In fact, some industries have started to apply mode of old-for-new service, for example electronics industry. As we know, newsvendor operation is a classic newsboy problem. Researching on these two sales models can extend theoretical model of basic newsboy. Therefore, the research has profound theoretical and practical significance.The main contents of this thesis are as followed:Firstly, based on the summary of relative literatures, the basic newsboy problem model was introduced, and the optimal order quantity was presented. Meanwhile, the relationships among the parameters were discussed by simulation under the uniform distribution conditions.Secondly, the basic model was extended by taking into account a returning ratio permitted by supplier. The trend of optimal order quantity and expected revenue was illustrated by chart with the changed of returning ratios.Thirdly, the new models for sales modes of returning and swap products with time limitation and old-for-new service without the time limitations were developed. Both models are discussed when the returning ratio is existing and not. The relationships among the parameters were discussed by simulation under the uniform distribution conditions. We verified that the newsvendor's revenue could be increased by applying these two sale modes by examples.Fourthly, in the process of extending the foregoing models, the differences and relationship of models between newsboy and other industries were discussed emphatically. Meanwhile, we pointed out the future aspects in the research with these sales modes.In the conclusion, we summarized the works of the thesis, and pointed out the main innovation of the theses and the perspective for the further research.