Stockout aversion in retailing supply chain using newsvendor models
type: Item
instance of: scholarly article
title: Stockout aversion in retailing supply chain using newsvendor models
zbMATH Open document ID: 1452.90029
DOI: 10.1504/IJMOR.2016.074854
author: Arindum Mukhopadhyay
author: Adrijit Goswami
published in: International Journal of Mathematics in Operational Research
publication date: 2020-10-15T00:00:00Z
review text: Summary: The sophisticated behaviour of the customers, availability of variety of products, stiff competition and product obsolescence results in limited selling period and uncertainty in demand for a product. In that context, the newsvendor models have found increasing applicability in supply chain management (SCM). This paper investigates a newsvendor model with alternative risk preference in which vendor is averse to stockouts in order to avoid dissatisfaction of customers, cost of emergency order and lost sales. We obtain unique optimal solution of the problem and study its various properties. Since newsvendor problem ignores the effect of other vendors in the supply chain, we study a supply chain system with risk neutral wholesaler selling its product to several vendors with stockout averse preferences competing for inventory. We establish the existence and uniqueness of a pure strategy Nash equilibrium. Then we obtain unique optimal solution and study its characteristics. Finally, our model is illustrated with the help of numerical example.
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 7261335
zbMATH Keywords: stockout aversion
zbMATH Keywords: newsvendor game
zbMATH Keywords: equilibrium analysis
zbMATH Keywords: inventory modelling
zbMATH Keywords: retailing supply chains
zbMATH Keywords: supply chain management
zbMATH Keywords: SCM
zbMATH Keywords: newsvendor models
zbMATH Keywords: alternative risk preference
MaRDI profile type: MaRDI publication profile
description: scientific article; zbMATH DE number 7261335