Analysis of empirical sales data lead us to consider newsboy model for four practicalmarket conditions arising from the presence/absence of stochastic lead time and exogenouslinear temporal decline in selling price when distribution of the stochastic demanddepends upon initial selling price. Viability of the solutions is discussed for threestrategies of obtaining optimal initial selling price and/or ordering quantity. Numericalstudies are conducted to assess the effects of lead time and price decline.
