Optimal pricing and lot sizing for a single period problem

There has been significant interest in single period newsvendor problem where besides determining lot size, the decision maker has to set the selling price. The model is applicable when the demand for the product is a stochastic function of the selling price; i.e., the retailer is facing price sensitive uncertain demand. Although there have been several models, the problem needs exploration when the retailer finds it hard to estimate the shortage cost and rather use the notion of service level to set his/her lot sizing and pricing policy.