IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v329y2023i1d10.1007_s10479-020-03636-2.html
   My bibliography  Save this article

The optimal order decisions of a risk-averse newsvendor under backlogging

Author

Listed:
  • Jianghua Zhang

    (Shandong University)

  • Felix T. S. Chan

    (The Hong Kong Polytechnic University)

  • Xinsheng Xu

    (Binzhou University)

Abstract

In this paper, we are concerned with the optimal order quantities for a risk-averse newsvendor with backlogging, where it is assumed that all or part of the unsatisfied demands can be fullfilled by backordering. The optimal order quantities are derived under the famous conditional value-at-risk (CVaR) criterion and mean-CVaR criterion on controlling the profit loss due to the uncertainty of market demands. With the optimal order quantities to the proposed models, several important monotone properties are obtained and their relationships with the existing results are discussed. Moreover, it is shown in this paper that low risk means low expected profit while high expected profit comes with high risk. Finally, we present some managerial insights for the risk-averse newsvendor model under backlogging.

Suggested Citation

  • Jianghua Zhang & Felix T. S. Chan & Xinsheng Xu, 2023. "The optimal order decisions of a risk-averse newsvendor under backlogging," Annals of Operations Research, Springer, vol. 329(1), pages 225-247, October.
    • Handle: RePEc:spr:annopr:v:329:y:2023:i:1:d:10.1007_s10479-020-03636-2
    DOI: 10.1007/s10479-020-03636-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-020-03636-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-020-03636-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:329:y:2023:i:1:d:10.1007_s10479-020-03636-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.