Title :
A newsvendor order decision analysis in a safety space
Author_Institution :
School of Economics Shanghai University Shanghai, Chinese
Abstract :
In a risk-averse newsvendor problem, researchers analyzed the probability distributions of profits directly to obtain the optimal decision. We begin from a viewpoint of inventory investment, discuss about the relationship between the property of capitals and risk preference. We take the maximum loss of the investment as the measurement of risk, and construct a safety space for the risk-averse decision maker. In this bound, we obtain the optimal expected utility decision under a fixed risk-taking.
Keywords :
Inventory management; Investments; Marketing and sales; Optimization; Risk management; Safety; Supply chains; newsvendor; order decision; risk averse; risk taking; safety space;
Conference_Titel :
E -Business and E -Government (ICEE), 2011 International Conference on
Conference_Location :
Shanghai, China
Print_ISBN :
978-1-4244-8691-5
DOI :
10.1109/ICEBEG.2011.5882283
