Dissertation
Newsvendors and supply chain coordination under satisficing objectives and multiple objectives
Washington State University
Doctor of Philosophy (PhD), Washington State University
08/2007
DOI:
https://doi.org/10.7273/000005752
Abstract
The vast majority the research in Operations Management and Supply Chain
Management assume the maximizing objectives, particularly the objective of expected
profit (cost) maximization (minimization). In this dissertation, we study the optimal
behaviors of individual firms and supply chains under the satisficing objectives and
multiple objectives. A satisficing objective is to maximize the probabilities to attain some
required target performance levels.
This dissertation consists of five chapters. In Chapter 1, we first provide the background
and literature review.
In Chapter 2, we study individual firm(s) under the satisficing objectives. We first
derive the optimal order quantity and/or retail price for a newsvendor under three
possible objectives. Next we study multiple newsvendors under inventory competition.
We obtain analytic results which are quite different from those obtained under the
objective of expected profit maximization. Finally, we briefly study the problem of target
setting in the framework of newsvendors.
In Chapter 3, we study contract design and supply chain coordination under the
satisficing objectives. We first focus on the profit satisficing objective, under which we
derive the Pareto-optimal contracts and provide a necessary and sufficient condition for
supply chain coordination. Our results provide an important justification of the wide of
wholesale price contracts besides their lower implementation cost. We also propose the
use of slotting fee contracts to coordinate such a supply chain. Finally in Chapter 3, we
extend our study to the case where each agent adopts the profit satisficing and the
revenue satisficing objectives simultaneously.
In Chapter 4, we study the supply chain under multiple objectives. We first study
quantity flexibility contracts under both the profit satisficing objective and the objective
of expected profit maximization. We show that more degrees of freedom benefit the
supply chain under multiple objectives. Next we make an initial attempt to study the
supply chain where different agents adopt different types of objectives.
Finally in Chapter 5, we summarize our contributions in this study. We also suggest a
number of future research projects.
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Details
- Title
- Newsvendors and supply chain coordination under satisficing objectives and multiple objectives
- Creators
- Chunming Shi
- Contributors
- Bintong Chen (Chair)Charles Lee Munson (Committee Member) - Washington State University, Department of Finance and Management ScienceTimothy Baker (Committee Member) - Washington State University, Department of Finance and Management ScienceJohn D Wells (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- Carson College of Business
- Theses and Dissertations
- Doctor of Philosophy (PhD), Washington State University
- Publisher
- Washington State University
- Number of pages
- 160
- Identifiers
- 99901054758801842
- Language
- English
- Resource Type
- Dissertation