An efficient heuristic for the multi-product satiating newsboy problem

Preference of satiation of a target performance over maximization of expected performance in uncertain situations is well-documented in the economics literature. However, the newsboy problem with satiation (of a prot target) objective has not received its due attention. In the multi-product setting, solution methods available in the literature are inecient. We developed an ecient heuristic to solve the problem. The heuristic decomposes the multi-product problem into easily solvable single-product problems. We tested the heuristic with a large number of test instances. The heuristic can be adopted to solve the \target assignment problem". We demonstrated it with some numerical examples.