International Journal of Inventory Research
Assembly/processing cost; risk price; riskless price; stocking factor; base price
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
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Accepted Author Manuscript
Leng, M., & Parlar, M. (2010). A note on optimal "riskless" and "risk" prices for the newsvendor problem with an assembly cost. International Journal of Inventory Research, 1(2), 209-219.