The sequence of the event is as follows: The retailer orders Q units of the product A from the supplier at a fixed price at the beginning of the selling season, then it sells the product A to its customers at the retail price. If customer demand is greater than Q, then it will pay the shortage penalty cost for the unsatisfied demand. If customer demand is less than Q, the retailer will trade the unsold product A for the product it needs on a barter platform. If there are still some unsold product A after barter exchange, the retailer will dispose of them at a very low price as in the classical newsvendor model.The notation used in the paper is as follows: