Loss-Averse Retailer’s Optimal Ordering Policies for Perishable Products with Customer Returns
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-5, 5 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-10-15
Country of Publication
Egypt
No. of Pages
5
Main Subjects
Abstract EN
We investigate the loss-averse retailer’s ordering policies for perishable product with customer returns.
With the introduction of the segmental loss utility function, we depict the retailer’s loss aversion decision bias and establish the loss-averse retailer’s ordering policy model.
We derive that the loss-averse retailer’s optimal order quantity with customer returns exists and is unique.
By comparison, we obtain that both the risk-neutral and the loss-averse retailer’s optimal order quantities depend on the inventory holding cost and the marginal shortage cost.
Through the sensitivity analysis, we also discuss the effect of loss-averse coefficient and the ratio of return on the loss-averse retailer’s optimal order quantity with customer returns.
American Psychological Association (APA)
Chen, Xu& Zhou, Qian. 2014. Loss-Averse Retailer’s Optimal Ordering Policies for Perishable Products with Customer Returns. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-5.
https://search.emarefa.net/detail/BIM-1046492
Modern Language Association (MLA)
Chen, Xu& Zhou, Qian. Loss-Averse Retailer’s Optimal Ordering Policies for Perishable Products with Customer Returns. Mathematical Problems in Engineering No. 2014 (2014), pp.1-5.
https://search.emarefa.net/detail/BIM-1046492
American Medical Association (AMA)
Chen, Xu& Zhou, Qian. Loss-Averse Retailer’s Optimal Ordering Policies for Perishable Products with Customer Returns. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-5.
https://search.emarefa.net/detail/BIM-1046492
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1046492