Product damage and free sampling : a newsvendor model with passive and proactive self-consumption

• Main Author: Liu, Fang
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2015
• Subjects: Self-consumption; Newsvendor Model; DRNTU::Business::Operations management
• Online Access: https://hdl.handle.net/10356/81354; http://hdl.handle.net/10220/39213
• Institution: Nanyang Technological University

A retailer sells a single product for a single period. During transportation and storage, some of these products are consumed by the retailer either (1) due to unavoidable damages (passive self-consumption), or (2) distributed for free to the customers (proactive self-consumption). This creates a mi...