A Two-Period Newsvendor Model with Product Extension and Shortage-Making Strategy

Table 1

Comparison between our NV and the classical NV as 𝑟=0.6–1.0.

		𝑝1	𝑝2	𝑄1	𝑄2	𝐸1	𝐸2	𝐸
Classical NV		58.8	58.8	265.7	265.7	10485.2	10485.2	20970.4
Our NV	𝑟 = 0.6	56.0	60.9	220.0	284.3	9246.7	11548.7	20795.4
	𝑟 = 0.7	56.0	61.2	220.0	286.1	9246.7	11712.3	20959.0
	𝑟 = 0.8	56.0	61.6	220.0	287.9	9246.7	11877.0	21123.7
	𝑟 = 0.9	56.0	61.9	220.0	289.7	9246.7	12042.9	21289.5
	𝑟 = 1.0	56.0	62.3	220.0	291.5	9246.7	12209.8	21456.5