Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Research on Risk-Averse Newsboy under Supply Uncertainty

위험회피성향을 고려한 공급 불확실성하(下) 신문팔이소년 문제에 대한 고찰

  • Kim, Hyoungtae (Department of Global Service Management, Woosong University)
  • 김형태 (우송대학교 글로벌서비스경영학부)
  • Received : 2013.07.22
  • Accepted : 2013.09.01
  • Published : 2013.09.30
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Abstract

In this paper, the single-period inventory problem, what is called newsboy problem, has been revisited with two different conditions, uncertain supply and risk-averseness. Eeckhoudt et al. [5] investigated the effect of risk-averseness of a newsboy on the optimal order quantity in a stochastic demand setting. In contrary to Eeckhoudt et al. [5] this paper investigates the effect of risk-averseness in a stochastic supply setting. The findings from this investigation say that if ${\alpha}^*$ represents the optimal order quantity without risk-averseness then the risk-averse optimal order quantity can be greater than ${\alpha}^*$ and can be less than ${\alpha}^*$ as well.

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References

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