The single-period (newsvendor) problem under interval grade uncertaintiesCitation formats

Standard

The single-period (newsvendor) problem under interval grade uncertainties. / Guo, Min; Chen, Yu-Wang; Wang, Hongwei; Yang, Jian-Bo; Zhang, Keyong.

In: European Journal of Operational Research, Vol. 273, No. 1, 16.02.2019, p. 198-216.

Research output: Contribution to journalArticle

Harvard

Guo, M, Chen, Y-W, Wang, H, Yang, J-B & Zhang, K 2019, 'The single-period (newsvendor) problem under interval grade uncertainties' European Journal of Operational Research, vol. 273, no. 1, pp. 198-216. https://doi.org/10.1016/j.ejor.2018.07.048

APA

Guo, M., Chen, Y-W., Wang, H., Yang, J-B., & Zhang, K. (2019). The single-period (newsvendor) problem under interval grade uncertainties. European Journal of Operational Research, 273(1), 198-216. https://doi.org/10.1016/j.ejor.2018.07.048

Vancouver

Guo M, Chen Y-W, Wang H, Yang J-B, Zhang K. The single-period (newsvendor) problem under interval grade uncertainties. European Journal of Operational Research. 2019 Feb 16;273(1):198-216. https://doi.org/10.1016/j.ejor.2018.07.048

Author

Guo, Min ; Chen, Yu-Wang ; Wang, Hongwei ; Yang, Jian-Bo ; Zhang, Keyong. / The single-period (newsvendor) problem under interval grade uncertainties. In: European Journal of Operational Research. 2019 ; Vol. 273, No. 1. pp. 198-216.

Bibtex

@article{bbe4700fe8fc48df9716036d8d7f3596,
title = "The single-period (newsvendor) problem under interval grade uncertainties",
abstract = "Traditional stochastic inventory models assume to have complete knowledge about the demand probability distribution. However, in reality it is often difficult to characterize demand precisely, especially with limited historical data or through subjective forecasting. In this paper, we aim to develop a consistent framework of formulating demand uncertainties in single-period (newsvendor) problems, where a set of discrete assessment grades and/or grade intervals are used to represent complex uncertainties in both quantitative and qualitative evaluations. In this uncertainty formulation framework, we use random set theory to study optimal ordering policies for the newsvendor problem under optimistic, pessimistic, minimum regret and maximum entropy criteria respectively. Numerical studies are conducted to illustrate the effectiveness of the proposed approach.",
keywords = "Inventory, Decision analysis, Uncertainty expression",
author = "Min Guo and Yu-Wang Chen and Hongwei Wang and Jian-Bo Yang and Keyong Zhang",
year = "2019",
month = "2",
day = "16",
doi = "10.1016/j.ejor.2018.07.048",
language = "English",
volume = "273",
pages = "198--216",
journal = "European Journal of Operational Research",
issn = "0377-2217",
publisher = "Elsevier BV",
number = "1",

}

RIS

TY - JOUR

T1 - The single-period (newsvendor) problem under interval grade uncertainties

AU - Guo, Min

AU - Chen, Yu-Wang

AU - Wang, Hongwei

AU - Yang, Jian-Bo

AU - Zhang, Keyong

PY - 2019/2/16

Y1 - 2019/2/16

N2 - Traditional stochastic inventory models assume to have complete knowledge about the demand probability distribution. However, in reality it is often difficult to characterize demand precisely, especially with limited historical data or through subjective forecasting. In this paper, we aim to develop a consistent framework of formulating demand uncertainties in single-period (newsvendor) problems, where a set of discrete assessment grades and/or grade intervals are used to represent complex uncertainties in both quantitative and qualitative evaluations. In this uncertainty formulation framework, we use random set theory to study optimal ordering policies for the newsvendor problem under optimistic, pessimistic, minimum regret and maximum entropy criteria respectively. Numerical studies are conducted to illustrate the effectiveness of the proposed approach.

AB - Traditional stochastic inventory models assume to have complete knowledge about the demand probability distribution. However, in reality it is often difficult to characterize demand precisely, especially with limited historical data or through subjective forecasting. In this paper, we aim to develop a consistent framework of formulating demand uncertainties in single-period (newsvendor) problems, where a set of discrete assessment grades and/or grade intervals are used to represent complex uncertainties in both quantitative and qualitative evaluations. In this uncertainty formulation framework, we use random set theory to study optimal ordering policies for the newsvendor problem under optimistic, pessimistic, minimum regret and maximum entropy criteria respectively. Numerical studies are conducted to illustrate the effectiveness of the proposed approach.

KW - Inventory

KW - Decision analysis

KW - Uncertainty expression

U2 - 10.1016/j.ejor.2018.07.048

DO - 10.1016/j.ejor.2018.07.048

M3 - Article

VL - 273

SP - 198

EP - 216

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 1

ER -