The bartered-type return policy based on strategic customer behavior

Abstract

Considering strategic customer behavior (SCR), this paper studies the bartered-type return policy, and builds an extended newsvendor model with the bartered-type return policy based SCR. By analyzing our model we obtain the expression of the seller's optimal price and inventory. The optimal price is related to the distribution function of the value of the product, and the optimal inventory is related to the price of the replaced product when the cost and the salvage price is given. At last we simulate the actual data using the software matlab, and clearly illustrates the application of our model in the real condition. © 2011 Springer-Verlag Berlin Heidelberg.