The newsvendor problem is formulated with the focus theory of choice in which instead of using the expected utility in the existing approaches, the optimal order quantity is determined as per which order quantity’s focus (the most salient demand) is the most preferred. This new formulation is a bilevel optimization problem in which the lower level chooses the focus of each order quantity and the upper level determines the optimal order quantity. The proposed model has maximin upper and lower level programs that are nonsmooth. We derive the optimal order quantity under this new framework and characterize the properties of the optimal solution. The proposed model provides a new perspective to analyze the newsvendor problems.
雑誌名
4OR : A Quarterly Journal of Operations Research
発行年
2022-08-10
ISSN
16142411
書誌レコードID
AA12066023
DOI
info:doi/10.1007/s10288-022-00520-6
権利
This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: http://dx.doi.org/10.1007/s10288-022-00520-6
A bilevel optimization model for the newsvendor problem with the focus theory of choice
FORJ-S-21-00150R1.pdf
(125.85KB)
トップページ