A distribution-free newsvendor model with balking penalty and random yield

Purpose: The purpose of this paper is to extend the analysis of the distribution-free newsvendor problem under the circumstance of customer balking, which usually occurs when customers are reluctant to buy products if the available inventory falls below a threshold level. Design/methodology/approach...

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Detalles Bibliográficos
Autores: Lan, Chongfeng, Ji, Huanyong, Li, Jing
Tipo de recurso: artículo
Fecha de publicación:2015
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/84556
Acceso en línea:https://hdl.handle.net/2117/84556
Access Level:acceso abierto
Palabra clave:Inventory control
Newsvendor model
Distribution-free
Balking penalty
Random yield
Gestió d'estocs -- Models matemàtics
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
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repository_id_str
spelling A distribution-free newsvendor model with balking penalty and random yieldLan, ChongfengJi, HuanyongLi, JingInventory controlNewsvendor modelDistribution-freeBalking penaltyRandom yieldGestió d'estocs -- Models matemàticsÀrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacionsPurpose: The purpose of this paper is to extend the analysis of the distribution-free newsvendor problem under the circumstance of customer balking, which usually occurs when customers are reluctant to buy products if the available inventory falls below a threshold level. Design/methodology/approach: A new tradeoff tool is provided as a replacement of the traditional one to weigh the holding cost and the goodwill costs segment: apart from the shortage penalty, the balking penalty is introduced. Furthermore, such research methodology is employed in the case of random yield. Findings: A model is presented for determining both an optimal order quantity and a lower bound of the profit under the worst possible distribution of the demand. We also study the effects of shortage penalty and the balking penalty on the bias of the optimal order quantity, which have been largely bypassed in the existing distribution-free single period models with balking. Numerical examples are presented to illustrate the result. Originality/value: The incorporation of balking penalty and random yield represents an important improvement in inventory policy performance for distribution-free newsvendor problem when customer balking occurs and the distributional form of demand is uncertain.OmniaScience20152015-07-0120162016-03-16journal articlehttp://purl.org/coar/resource_type/c_6501NAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/2117/84556reponame:UPCommons. Portal del coneixement obert de la UPCinstname:Universitat Politècnica de Catalunya (UPC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial 3.0 Unportedhttp://creativecommons.org/licenses/by-nc/3.0/info:eu-repo/semantics/openAccessoai:upcommons.upc.edu:2117/845562026-05-27T15:37:01Z
dc.title.none.fl_str_mv A distribution-free newsvendor model with balking penalty and random yield
title A distribution-free newsvendor model with balking penalty and random yield
spellingShingle A distribution-free newsvendor model with balking penalty and random yield
Lan, Chongfeng
Inventory control
Newsvendor model
Distribution-free
Balking penalty
Random yield
Gestió d'estocs -- Models matemàtics
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
title_short A distribution-free newsvendor model with balking penalty and random yield
title_full A distribution-free newsvendor model with balking penalty and random yield
title_fullStr A distribution-free newsvendor model with balking penalty and random yield
title_full_unstemmed A distribution-free newsvendor model with balking penalty and random yield
title_sort A distribution-free newsvendor model with balking penalty and random yield
dc.creator.none.fl_str_mv Lan, Chongfeng
Ji, Huanyong
Li, Jing
author Lan, Chongfeng
author_facet Lan, Chongfeng
Ji, Huanyong
Li, Jing
author_role author
author2 Ji, Huanyong
Li, Jing
author2_role author
author
dc.subject.none.fl_str_mv Inventory control
Newsvendor model
Distribution-free
Balking penalty
Random yield
Gestió d'estocs -- Models matemàtics
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
topic Inventory control
Newsvendor model
Distribution-free
Balking penalty
Random yield
Gestió d'estocs -- Models matemàtics
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
description Purpose: The purpose of this paper is to extend the analysis of the distribution-free newsvendor problem under the circumstance of customer balking, which usually occurs when customers are reluctant to buy products if the available inventory falls below a threshold level. Design/methodology/approach: A new tradeoff tool is provided as a replacement of the traditional one to weigh the holding cost and the goodwill costs segment: apart from the shortage penalty, the balking penalty is introduced. Furthermore, such research methodology is employed in the case of random yield. Findings: A model is presented for determining both an optimal order quantity and a lower bound of the profit under the worst possible distribution of the demand. We also study the effects of shortage penalty and the balking penalty on the bias of the optimal order quantity, which have been largely bypassed in the existing distribution-free single period models with balking. Numerical examples are presented to illustrate the result. Originality/value: The incorporation of balking penalty and random yield represents an important improvement in inventory policy performance for distribution-free newsvendor problem when customer balking occurs and the distributional form of demand is uncertain.
publishDate 2015
dc.date.none.fl_str_mv 2015
2015-07-01
2016
2016-03-16
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/2117/84556
url https://hdl.handle.net/2117/84556
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 3.0 Unported
http://creativecommons.org/licenses/by-nc/3.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 3.0 Unported
http://creativecommons.org/licenses/by-nc/3.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv OmniaScience
publisher.none.fl_str_mv OmniaScience
dc.source.none.fl_str_mv reponame:UPCommons. Portal del coneixement obert de la UPC
instname:Universitat Politècnica de Catalunya (UPC)
instname_str Universitat Politècnica de Catalunya (UPC)
reponame_str UPCommons. Portal del coneixement obert de la UPC
collection UPCommons. Portal del coneixement obert de la UPC
repository.name.fl_str_mv
repository.mail.fl_str_mv
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