<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

Satisficing Newsvendor Problem with the Optimism Coefficient

Foundations of Computing and Decision Sciences

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Satisficing Newsvendor Problem with the Optimism Coefficient"}

In this research note the satisficing newsvendor problem is considered which is defined as the maximization of the probability of exceeding the expected profit...

Satisficing Newsvendor Problem with the Optimism Coefficient

Published Online: Aug 28, 2019

Page range: 261 - 271

Received: Oct 04, 2018

Accepted: Apr 09, 2019

DOI: https://doi.org/10.2478/fcds-2019-0013

Keywords
inventory control, optimization, newsvendor, optimism coefficient

© 2019 Milena Bieniek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Satisficing Newsvendor Problem with the Optimism Coefficient

Published Online: Aug 28, 2019

Page range: 261 - 271

Received: Oct 04, 2018

Accepted: Apr 09, 2019

DOI: https://doi.org/10.2478/fcds-2019-0013

Keywordsinventory control, optimization, newsvendor, optimism coefficient

© 2019 Milena Bieniek, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
inventory control, optimization, newsvendor, optimism coefficient