Opportunity Loss Minimization and Newsvendor Behavior

Modeling Newsvendor Behavior: A Prospect Theory Approach

A newsvendor model with service and loss constraints

Actual performance measurement systems do not only consider financial measures like costs and profits but also non-financial indicators with respect customer service, quality and flexibility. Using the newsvendor model we explore the influence of possibly conflicting performance measures on important operations decisions like the order quantity and the selling price of a product. For price-inde...

Newsvendor Selling to Loss-Averse Consumers with Stochastic Reference Points

We study a newsvendor who sells a perishable asset over repeated sales seasons to loss averse consumers. We identify conditions under which the expected price can be increasing in the consumer loss aversion level, and numerically show that the firm can prefer low and moderate levels of demand variability over no demand uncertainty. Moreover, we obtain a set of counterintuitive insights on how c...

Loss allocation in the newsvendor problem with fairness concerns

This paper studies the loss allocation problem in a supplier-retailer supply chain when the retailer reveals fairness concern. A loss-sharing contract is provided to coordinate such a loss and some new interesting management insights are found.

Minimization of Information Loss through

In this article, we explore the concept of minimization of information loss (MIL) as a a target for neural network learning. We relate MIL to supervised and unsupervised learning procedures such as the Bayesian maximum a-posteriori (MAP) discriminator, minimization of distortion measures such as mean squared error (MSE) and cross-entropy (CE), and principal component analysis (PCA). To deal wit...