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Mean-Risk Analysis of Single-Period Inventory Problems

Chapter
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Part of the International Series in Operations Research & Management Science book series (ISOR, volume 178)

Abstract

In this chapter, we carry out mean-risk analysis for the single-period inventory problems. We first construct the basic inventory control model under the mean-risk framework. We then present two kinds of mean-risk objective functions and analytically prove the existence of an efficient region for either mean-risk model. After that, we explore the construction of the efficient frontier in the mean-risk domain. Before we conclude, numerical analysis is presented to illustrate the mean-risk trade-off in the single-period inventory decision making problems.

Keywords

Single-period Inventory Problem Mean-risk Objective Function Efficient Frontier Efficient Region Risk-averse Retailer 
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References

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Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.Institute of Textiles and ClothingThe Hong Kong Polytechnic UniversityHung Hom, KowloonHong Kong
  2. 2.Department of Management SciencesCity University of Hong KongKowloon Tong, KowloonHong Kong

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