How Larger Demand Variability May Lead to Lower Costs in the Newsvendor Problem
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چکیده
منابع مشابه
How Larger Demand Variability May Lead to Lower Costs in the Newsvendor Problem
In this paper we consider the Newsvendor Problem. Intuition may lead to the hypothesis that in this stochastic inventory problem a higher demand variability results in larger variances and in higher costs. In a recent paper, Song (1994a) has proved that the intuition is correct for many demand distributions that are commonly used in practice, such as for the Normal distribution function. Howeve...
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Intuition may lead to the hypothesis that in stochastic inventory systems a higher demand variability results in larger variances and in an increase of total expected system costs. In a recent paper, Song [5] formally proved this assertion to hold for a certain class of inventory models (including the Newsboy Problem), given a particular definition of variability. Here we use stochastic dominan...
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ژورنال
عنوان ژورنال: Operations Research
سال: 1998
ISSN: 0030-364X,1526-5463
DOI: 10.1287/opre.46.6.934