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2016 | 11 | 20-35
Article title

Bicriteria Optimization in the Newsvendor Problem with Exponentially Distributed Demand

Authors
Content
Title variants
Languages of publication
EN
Abstracts
EN
In this paper exponential distribution is implemented as a demand distribution in newsvendor model with two different and conflicting goals. The first goal is the standard objective of maximization of the expected profit. The second one is to maximize the probability of exceeding the expected profit, called survival probability. Using exponential distribution as the demand distribution allows us to obtain the exact solutions. Also for this distribution we can study the monotonicity of survival probability with respect to various model parameters analytically. Additional results are obtained when various sets of the parameters are considered. Finally, the bicriteria index which combines these conflicting objectives is optimized which gives the compromise solution. Moreover, in order to illustrate theoretical results, we present numerical examples and graphs of auxiliary functions.
Year
Volume
11
Pages
20-35
Physical description
Contributors
  • Maria Curie-Skłodowska University. Faculty of Economics. Department of Statistics and Econometrics. Poland
References
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Document Type
Publication order reference
Identifiers
ISSN
2084-1531
YADDA identifier
bwmeta1.element.cejsh-bf8c6030-9514-45fa-b2d4-bbef7dd0b639
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