Solving the one-shot decision theory based newsvendor models

Xide Zhu, Peijun Guo

Abstract

The one-shot decision theory (OSDT)has been utilized to solve newsvendor models for innovative products. In fact, OSDT based newsvendor models are a special kind of bilevel programming problems. The existing approaches may not be applicable for solving these models because they include nonconvex nonsmooth lower level optimization problems. In this paper, we translate these models into conventional optimization models with considering the characteristics of the optimal solutions, which effectively handle the difficulties of the original newsvendor models. The theoretical results are given and a numerical example is used to show the effectiveness of the proposed methods.

Original languageEnglish
Title of host publicationIEEE International Conference on Industrial Engineering and Engineering Management
PublisherIEEE Computer Society
Pages300-304
Number of pages5
Volume2016-January
ISBN (Print)9781467380669
DOIs
StatePublished - 2016 Jan 18
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2015 - Singapore, Singapore

Other

OtherIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2015
CountrySingapore
CitySingapore
Period15/12/615/12/9

Fingerprint

Decision theory

Keywords

  • Bilevel programming
  • minmax optimization
  • newsvendor problem
  • the one-shot decision theory

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

Cite this

Zhu, X., & Guo, P. (2016). Solving the one-shot decision theory based newsvendor models. In IEEE International Conference on Industrial Engineering and Engineering Management. (Vol. 2016-January, pp. 300-304). [7385656] IEEE Computer Society. DOI: 10.1109/IEEM.2015.7385656

Solving the one-shot decision theory based newsvendor models. / Zhu, Xide; Guo, Peijun.

IEEE International Conference on Industrial Engineering and Engineering Management. Vol. 2016-January IEEE Computer Society, 2016. p. 300-304 7385656.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Zhu, X & Guo, P 2016, Solving the one-shot decision theory based newsvendor models. in IEEE International Conference on Industrial Engineering and Engineering Management. vol. 2016-January, 7385656, IEEE Computer Society, pp. 300-304, IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2015, Singapore, Singapore, 6-9 December. DOI: 10.1109/IEEM.2015.7385656
Zhu X, Guo P. Solving the one-shot decision theory based newsvendor models. In IEEE International Conference on Industrial Engineering and Engineering Management. Vol. 2016-January. IEEE Computer Society. 2016. p. 300-304. 7385656. Available from, DOI: 10.1109/IEEM.2015.7385656

Zhu, Xide; Guo, Peijun / Solving the one-shot decision theory based newsvendor models.

IEEE International Conference on Industrial Engineering and Engineering Management. Vol. 2016-January IEEE Computer Society, 2016. p. 300-304 7385656.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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