2021
DOI: 10.1155/2021/9967359
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A Risk-Averse Newsvendor Model under Stochastic Market Price

Abstract: The optimal inventory control is closely related to an enterprise’s operational efficiency, survival, and development. Market price uncertainty is introduced into the newsvendor model and the uncertainty’s impact on the firm's optimal stocking quantity is discussed. The results show that the impact of stochastic market price on the optimal stocking quantity under a given condition mainly depends on the magnitude of inventory cost. When the inventory cost is low, the market price’s uncertainty leads the firm to… Show more

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Cited by 3 publications
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