A note on optimal "riskless" and "risk" prices for the newsvendor problem with an assembly cost

Mingming LENG, Mahmut PARLAR

Research output: Journal PublicationsJournal Article (refereed)


For an assemble-to-order Örm operating in a single period, we Önd that, for the multiplicative demand case the optimal riskless price may or may not be higher than the optimal risk price. However, for the additive demand case, the optimal riskless price is always greater than the optimal risk pric
Original languageEnglish
Pages (from-to)209-219
Number of pages11
JournalInternational Journal of Inventory Research
Issue number2
Publication statusPublished - 1 Jan 2010


Bibliographical note

Prof. LENG Mingming - Research supported by the Research and Postgraduate Studies Committee of Lingnan University under Research Project No. DR08A7.

Prof. PARLAR Mahmut - Research supported by the Natural Sciences and Engineering Research Council of Canada.


  • Assembly/processing cost; risk price; riskless price; stocking factor; base price

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