The multi-item newsvendor model with cross-selling and the solution when demand is jointly normally distributed
We model the multi-item newsvendor problem considering cross-selling effect. We derive the first-order optimality conditions for the centralized model. The pure-strategy Nash equilibrium conditions of the competitive model are developed. Develop efficient algorithms to solve the centralized and the competitive models. Provide insights into the influences of cross-selling on newsvendor decision.
multi-item newsvendor cross-selling inventory