Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/23742
Title: Mean- variance analysis for the newsvendor problem
Authors: Choi, TM 
Li, D
Yan, H
Keywords: Inventory
Mean–variance (MV) analysis
Newsvendor problem
Risk
Risk attitude
Issue Date: 2008
Publisher: Institute of Electrical and Electronics Engineers
Source: IEEE transactions on systems, man, and cybernetics. Part A, Systems and humans, 2008, v. 38, no. 5, p. 1169-1180 How to cite?
Journal: IEEE transactions on systems, man, and cybernetics. Part A, Systems and humans 
Abstract: The newsvendor problem is a fundamental building block for inventory management with a stochastic demand. The classical newsvendor problem focuses on a sole objective of either minimizing the expected cost or maximizing the expected profit. However, the performance measure with expected value alone is insufficient, and it ignores the risk preferences of the decision makers. As a result, we carry out a mean-variance analysis of the newsvendor problem. We construct analytical models and reveal the problem's structural properties. We propose the solution schemes which help to identify the optimal solutions. Interesting findings regarding the efficient frontier, the case with a stockout penalty cost, and the safety-first objective are discussed.
URI: http://hdl.handle.net/10397/23742
ISSN: 1083-4427
EISSN: 1083-4419
DOI: 10.1109/TSMCA.2008.2001057
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

46
Citations as of Feb 12, 2016

WEB OF SCIENCETM
Citations

56
Last Week
0
Last month
2
Citations as of Aug 14, 2017

Page view(s)

41
Last Week
7
Last month
Checked on Aug 20, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.