Multiproduct Multiperiod Newsvendor Problem with Dynamic Market Efforts

Algorithm 1

Subgradient algorithm.

(1) , , , , , ;

(2) while ( & ) do

(3)   for    do

(4)     for    do

(5)      calculate by Lemma 1;

(6)      calculate and by Proposition 2;

(7)     endfor

(8)   endfor

(9)   ;

(10)    if    then

(11)     ;

(12)    endif

(13)    calculate , , and by Algorithm 2;

(14)    if    then

(15)     ;

(16)    endif

(17)    ;

(18)    if    then

(19)     ;

(20)    else

(21)     ;

(22)    endif

(23)    , ;

(24)    for    do

(25)     ;

(26)     for    do

(27)        ;

(28)     endfor

(29)    endfor

(30)    if    then

(31)     ;

(32)    endif

(33) endwhile