This paper considers models for the single-item newsboy problem with quantity discount and the following dual
performance measure: "maximize the expected profit subject to a constraint that the probability of achieving a target profit
level is no less than a predetermined risk level." We also consider two types of quantity discount: all-unit and incremental.
For our models with zero shortage cost, a closed-form solution for determining the optimal order quantity is derived.
However, models with positive shortage cost can only be solved numerically. © 1997 Elsevier Science B.V.