The Study on the Inventory Model with Substitution(Ⅰ):Optimization Solution
可替代产品的库存模型研究(Ⅰ):最优订货量

In this paper we develop a general profit maximization model for single-period two-product substitution problem, and show that it is concave and submodular. Then we obtain the optimal condition for order quantity, which is similar to the solution of the newsboy model.