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Satisficing Newsvendor Problem with the Optimism Coefficient Cover

Satisficing Newsvendor Problem with the Optimism Coefficient

By: Milena Bieniek  
Open Access
|Aug 2019

Abstract

In this research note the satisficing newsvendor problem is considered which is defined as the maximization of the probability of exceeding the expected profit multiplied by a positive constant. This constant called optimism coefficient can be chosen by the firm’s management either based on their preference or the market conditions. The coefficient indicates whether there is a low or high optimistic decision maker. For the general demand distribution the results are significantly dependent on this coefficient.

DOI: https://doi.org/10.2478/fcds-2019-0013 | Journal eISSN: 2300-3405 | Journal ISSN: 0867-6356
Language: English
Page range: 261 - 271
Submitted on: Oct 4, 2018
Accepted on: Apr 9, 2019
Published on: Aug 28, 2019
Published by: Poznan University of Technology
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2019 Milena Bieniek, published by Poznan University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.