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http://dx.doi.org/10.7232/JKIIE.2014.40.5.477

A Note on the Stochastic Comparison in Production Yield Management  

Park, Kyungchul (School of Business, Myongji University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.40, no.5, 2014 , pp. 477-480 More about this Journal
Abstract
The single-period production inventory control problem under random yield is considered to analyze the impact of the yield characteristics on the firm's profit. We use the stochastic comparison as a main vehicle to compare the profits resulted under different random yields. Commonly used stochastic orderings are addressed with an analysis of their implications on the firm's profit. Moreover, a distribution-free bound on the profit is derived.
Keywords
Random Yield; Newsvendor Problem; Stochastic Orders;
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