Loss-averse behavior makes the newsvendors avoid the losses more than seeking the probable gains as the losses have more psychological impact on the newsvendor than the gains. In economics and decision theory, the classical newsvendor models treat losses and gains equally likely, by disregarding the expected utility when the newsvendor is loss-averse. Moreover, the use of unbounded utility to m...

The main purpose of the paper is to present a specific case of dynamic pricing for the newsvendor problem. Firstly, the short overview of a newsvendor problem is given together with references to the selected literature and remarks to its applicability. Then, the dynamic pricing principles are discussed together with references to decision dependent randomness case in stochastic programming. Th...

The newsvendor problem is one of the most basic and widely applied inventory models. There are numerous extensions of this problem. One important extension is the multi-item newsvendor problem, in which the demand of each item may be correlated with that of other items. If the joint probability distribution of the demand is known, the problem can be solved analytically. However, approximating t...

The classical risk-neutral newsvendor problem is to decide the order quantity to maximize the one period expected pro.t under a given demand distribution. In this paper we consider a risk-averse newsvendor with a stochastic price-dependent demand. We use the Conditional Value-at-Risk (CVaR), a risk measure commonly used in finance, as the decision criterion. The aim of our study is to investiga...

Distributionally robust optimization is increasingly becoming a popular methodology to deal with uncertainty in problems. Although the optimizes for worst-case distribution, better understanding of prescriptions from models important practical perspective. In paper “On heavy-tail behavior distributionally newsvendor,” B. Das, A. Dhara, and K. Natarajan provide novel analysis problem newsvendor ...

The model proposed in this paper aims at identifying the best allocation of a limited quantity of product to a group of retailers supplied by a unique supplier, considering the variability of the demands faced on the market. The proposed approach aims at reducing the problem of demand inflation, inherent to many rationing policies, by considering the mean and the standard deviation of the deman...