Abstract: As an important operation optimization framework, newsvendor model has been extended from multiple aspects. In order to give a better explanation and guide the practice, this paper introduces the configurational idea of variable combination into the newsvendor model, and analyzes the optimal decisions in the newsvendor model from the perspective of multivariate combination without/with residual value. The result shows that:(1) the risk attitude is affected by objective conditions such as product profitability, decisionmaking structure between subjects (with or without interaction); (2) combinations of variables such as relative risk, residual value rate, product profitability, have important impacts on the optimal decision-making of the newsvendor model, and the impacts are manifested in a variety of regulation effects which separate the decision spaces into multiple domains; (3) the interactive decision-making structure generally improves the risk-taking willingness of decision-making subjects, which is also affected and even reversed by whether interaction is involved. The research results of this paper extend the research conclusions of the newsvendor model from the perspective of configurational theory, and also provide an integrating framework for explaining the conflicting views in literature.

Key words: newsvendor model, configurational, risk attitude, profitability, residual value