Title :
Analyzing newsvendor problems by one-shot decision approaches with considering regret
Author :
Guo, Peijun ; Yang, Yating
Author_Institution :
Fac. of Bus. Adm., Yokohama Nat. Univ., Yokohama, Japan
Abstract :
In this paper, a single-period inventory problem with partially known demand information characterized by possibility distributions is analyzed. Decision models are proposed based on one-shot decision approaches where three choices with considering regret of decision are provided. These three choices are used for determining which state of nature (demand) should be considered for each order quantity. Based on the selected states of nature (focus point), the optimal order quantity is obtained. Different kinds of focus points (demands) lead to different results (optimal order quantities) which reflecting a decision maker´s attitudes about possibility of demand and regret of decision.
Keywords :
decision making; inventory management; statistical distributions; decision making; decision models; newsvendor problem analysis; one-shot decision approach; optimal order quantity; possibility distributions; single-period inventory problem; Decision theory; Investments; Operations research; Possibility theory; Pricing; Semantics; Uncertainty; One-shot decision theory; newsvendor problem; possibility theory; regret focus point;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference on
Conference_Location :
Singapore
Print_ISBN :
978-1-4577-0740-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2011.6117873
