The multi-product multi-constraint newsboy problem: Applications, formulation and solution

Abstract

Practically all of the many earlier papers on the newsboy problem consider a single newsboy product with no capacity constraint. This paper points out the real-world prevalence of the “multiple-product multiple-constraint newsboy problem”, i.e., the “newstand problem”. We present a formulation and a solution procedure for this newsstand problem. Our solutions procedure has been designed to efficiently handle the common situation where a large number of products are involved; this solution procedure is shown to be necessary for the practical solution of realistic newsstand problems.