DocumentCode :
3337032
Title :
Loss-averse newsvendor model under supply uncertainty with multiplicative demand
Author :
Lijun Ma ; Shunyu Wang ; Yangliang Ge ; Ying Guo
Author_Institution :
Dept. of Manage. Sci. & Eng., Shenzhen Univ., Shenzhen, China
fYear :
2015
fDate :
22-24 June 2015
Firstpage :
1
Lastpage :
5
Abstract :
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.
Keywords :
pricing; supply and demand; supply chains; emergency order price; loss-averse newsvendor model; multiplicative demand; optimal order quantity; optimal selling price; retailer loss aversion; supply uncertainty; Analytical models; Numerical models; Psychology; Standards; Supply chains; Textile industry; Uncertainty; loss-averse; multiplicative demand; newsvendor; prospect theory; supply uncertainty;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
Type :
conf
DOI :
10.1109/ICSSSM.2015.7170232
Filename :
7170232
Link To Document :
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