One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint

Table 1

Notations.

Parameter	Meaning
	Market demand for product A
	Market demand for product B
	Order quantity of product A
	Order quantity of product B
	Unit retail price of product A
	Unit retail price of product B
	Unit wholesale cost of product A
	Unit wholesale cost of product B
	Unit salvage value of product A
	Unit salvage value of product B
	Unit understocking cost of product A
	Unit understocking cost of product B
	Price discount for substitute products
	One-way substitution rate
	Budget constraint
	Total profits
	Expected profits