search query: @author Anvari, M. / total: 6
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| Author: | Anvari, M. |
| Title: | Optimality criteria and risk in inventory models: The case of the newsboy problem |
| Journal: | Journal of the Operational Research Society
1987 : JUL, VOL. 38:7, p. 625-632 |
| Index terms: | INVENTORIES STOCHASTIC PROCESSES |
| Language: | eng |
| Abstract: | The use of market-valuation models in stochastic inventory problems is examined. The one-period newsboy problem is treated using the capital asset pricing model. It is pointed out that, unlike other working-capital decisions the use of capital asset pricing model to analyze inventory problems need not imply conflicting assumptions. The resulting optimal policy is characterized and is compared with the classical expected benefit maximalization framework. It is shown when the relevant risk of the inventory investment is considered, results are dramatically different. |
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