<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In this research note the satisficing newsvendor problem is considered which is defined as the maximization of the probability of exceeding the expected profit multiplied by a positive constant. This constant called optimism coefficient can be chosen by the firm’s management either based on their preference or the market conditions. The coefficient indicates whether there is a low or high optimistic decision maker. For the general demand distribution the results are significantly dependent on this coefficient.</p></abstract>

In this research note the satisficing newsvendor problem is considered which is defined as the maximization of the probability of exceeding the expected profit multiplied by a positive constant. This constant called optimism coefficient can be chosen by the firm’s management either based on their preference or the market conditions. The coefficient indicates whether there is a low or high optimistic decision maker. For the general demand distribution the results are significantly dependent on this coefficient.

Satisficing Newsvendor Problem with the Optimism Coefficient

Foundations of Computing and Decision Sciences

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Satisficing Newsvendor Problem with the Optimism Coefficient"}

In this research note the satisficing newsvendor problem is considered which is defined as the maximization of the probability of exceeding the expected profit...

Satisficing Newsvendor Problem with the Optimism Coefficient

Pubblicato online: 28 ago 2019

Pagine: 261 - 271

Ricevuto: 04 ott 2018

Accettato: 09 apr 2019

DOI: https://doi.org/10.2478/fcds-2019-0013

Parole chiave
inventory control, optimization, newsvendor, optimism coefficient

© 2019 Milena Bieniek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Satisficing Newsvendor Problem with the Optimism Coefficient

Pubblicato online: 28 ago 2019

Pagine: 261 - 271

Ricevuto: 04 ott 2018

Accettato: 09 apr 2019

DOI: https://doi.org/10.2478/fcds-2019-0013

Parole chiaveinventory control, optimization, newsvendor, optimism coefficient

© 2019 Milena Bieniek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Parole chiave
inventory control, optimization, newsvendor, optimism coefficient