Loss-averse newsvendor model under supply uncertainty with multiplicative demand

This paper extends the standard newsvendor problem based upon loss-averse under supply uncertainty with multiplicative demand. We show that the optimal order quantity is decreasing in the retailer´s loss aversion, and the optimal selling price is increasing in the retailer´s loss aversion. optimal selling price is increasing with respect to the unit cost and the optimal order quantity is decreasing with respect to the unit cost. We also find that both the optimal selling price and optimal order quantity increasing with respect to the emergency order price.