Bicriteria Optimization in the Risk-Adjusted Newsvendor Problem

• Authors: Bieniek Milena
• Languages of publication: EN

Abstracts

EN

In this paper, we study the newsvendor problem with various degrees of risk tolerance. We consider bicriteria optimization where the first objective is the classical maximization of the expected profit and the second one is the satisficing-level objective. The results depend on the risk coefficient and are different for a risk-neutral, a risk-averse, and a risk-seeking retailer. We find the compromise solution of the bicriteria newsvendor problem numerically, since the two objectives are mutually conflicting. The formulas obtained are illustrated with exponentially distributed demand.

Keywords

EN

Bicriteria optimization; Newsvendor problem; Risk

PL

Optymalizacja dwukryterialna; Ryzyko; Zagadnienie gazeciarza

• Publisher: Uniwersytet Ekonomiczny w Katowicach
• Journal: Multiple Criteria Decision Making
• Year: 2017
• Volume: 12
• Pages: 9-21

Contributors

author

Bieniek Milena

• Maria Curie-Skłodowska University. Economic Faculty. Department of Statistics and Econometrics. Lublin, Poland

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Identifiers

ISSN

2084-1531