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http://dx.doi.org/10.11627/jkise.2013.36.3.43

Research on Risk-Averse Newsboy under Supply Uncertainty  

Kim, Hyoungtae (Department of Global Service Management, Woosong University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.36, no.3, 2013 , pp. 43-50 More about this Journal
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.
Keywords
Single-period Inventory Problem; Newsboy; Risk-averseness;
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