Satisficing Newsvendor Problem with the Optimism Coefficient
2019
scientific article
english
- inventory control
- optimization
- newsvendor
- optimism coefficient
EN 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.
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CC BY-NC-ND (attribution - noncommercial - no derivatives)
public
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