Loss-Averse Inventory and Borrowing Decisions with Constraints on Working Capital in Fashion and Textiles Industry
Joint Authors
Zhao, Yingxue
Lin, Xudong
Ma, Lijun
Xue, Weili
Source
Mathematical Problems in Engineering
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-03-17
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Traditional inventory models focus on operational decisions and inventory control.
Quite few models consider the financial constraint and decision bias such as loss aversion, which are the reality in today's business environment, especially for the fashion and textiles industry.
In this paper we study the inventory control problem for a loss-averse retailer with financial constraint for operations in a periodic review setting in a finite horizon.
We characterize the optimal inventory control policies with self-financing or with borrowing as capital-dependent base-stock policies.
We demonstrate with numerical examples that the optimal base-stock level is nonincreasing in the accumulated wealth and the loss-aversion indicator.
American Psychological Association (APA)
Ma, Lijun& Xue, Weili& Zhao, Yingxue& Lin, Xudong. 2013. Loss-Averse Inventory and Borrowing Decisions with Constraints on Working Capital in Fashion and Textiles Industry. Mathematical Problems in Engineering،Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-1032062
Modern Language Association (MLA)
Ma, Lijun…[et al.]. Loss-Averse Inventory and Borrowing Decisions with Constraints on Working Capital in Fashion and Textiles Industry. Mathematical Problems in Engineering No. 2013 (2013), pp.1-9.
https://search.emarefa.net/detail/BIM-1032062
American Medical Association (AMA)
Ma, Lijun& Xue, Weili& Zhao, Yingxue& Lin, Xudong. Loss-Averse Inventory and Borrowing Decisions with Constraints on Working Capital in Fashion and Textiles Industry. Mathematical Problems in Engineering. 2013. Vol. 2013, no. 2013, pp.1-9.
https://search.emarefa.net/detail/BIM-1032062
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1032062