Robust Inventory Financing Model with Partial Information
Joint Authors
Jiang, Lin
Zhou, Jixiang
Sun, Hailei
Wang, Yong
Source
Journal of Applied Mathematics
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-06-11
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
Given current fast-changing market conditions and difficulty in obtaining financing for small- and medium-sized enterprises, this paper studies the robust inventory financing model under partial information, that is, where the demand distribution is partly known.
Two demand information cases are discussed: (1) the mean and variance and (2) the support of the demand distribution.
In this setting, the robust method that maximizes the worst-case profit and minimizes the firm’s maximum possible regret of not acting optimally would be used to formulate the optimal sales quantity.
We show that the approach used in this paper is tractable, and we provide an explicit expression for the robust optimal policy.
We then use numerical examples to compare the firm’s losses under two demand information cases with those occurring under demand certainty.
More importantly, the numerical examples indicate that our robust inventory financing model can obtain a robust but not conservative solution.
American Psychological Association (APA)
Wang, Yong& Zhou, Jixiang& Sun, Hailei& Jiang, Lin. 2014. Robust Inventory Financing Model with Partial Information. Journal of Applied Mathematics،Vol. 2014, no. 2014, pp.1-9.
https://search.emarefa.net/detail/BIM-456119
Modern Language Association (MLA)
Wang, Yong…[et al.]. Robust Inventory Financing Model with Partial Information. Journal of Applied Mathematics No. 2014 (2014), pp.1-9.
https://search.emarefa.net/detail/BIM-456119
American Medical Association (AMA)
Wang, Yong& Zhou, Jixiang& Sun, Hailei& Jiang, Lin. Robust Inventory Financing Model with Partial Information. Journal of Applied Mathematics. 2014. Vol. 2014, no. 2014, pp.1-9.
https://search.emarefa.net/detail/BIM-456119
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-456119