Newsvendor Models For Temperature Sensitive Products Considering Retailer's Psychological Behaviors

The newsvendor problem for temperature sensitive products refers to how the retailer determines the optimal sale policy for temperature sensitive products,it has extensive practical background.For example,the order quantity decision problem for the cold drinks,price decision problem for the down jackets and the sales effort decision problem for air-conditioners.In recent years,a lot of research results of traditional newsvendor problem have been obtained,most of them are with respect to the general products,perishable product or seasonal products,but they do not involve the temperature sensitive products and the impacts of the temperature in selling season on the demand of temperature sensitive products.Obviously,the existing research results are not suitable to solve the newsvendor problem for temperature sensitive products.Hence,it is necessary to propose a new decision theory and model for the newsvendor problem with respect to temperature sensitive products.Since the demand of temperature sensitive products can be affected by the temperature in selling season and the temperature changes with great uncertainty,the retailer needs to face more market risk.To trade off the profit and risk,the retailer usually exhibits some psychological behaviors that can affect the retailer's decision.Obviously,it is significant and important to consider the impact of the psychological behaviors in the newsvendor decision with respect to the temperature sensitive products.Currently,many scholars pay their attentions to the research on the newsvendor problem considering the psychological behaviors,and have obtain some research results,but these results do not consider the surplus and stock-out regret aversion or disappointment aversion and elation seeking.Hence,it is necessary to study the newsvendor problem for temperature sensitive products considering the retailer's regret aversion,disappointment aversion and elation seeking,and propose the corresponding decision models.The purpose of this thesis is to make a deep theoretical analysis and model research on the newsvendor problem for temperature sensitive products considering the retailer's psychological behaviors.A series of research works are conducted as follows.First,the study on the joint pricing and ordering decision model for temperature sensitive products considering the surplus and stock-out regret aversion is conducted.To solve the joint pricing and ordering decision problem,we first give the general description of the problem.Then,the additive and multiplicative demand functions are given according to the demand characteristics of the four types of the temperature sensitive products.Furthermore,regret aversion utility function is constructed.On the basis,the joint pricing and ordering decision models considering the surplus and stock-out regret aversion are constructed for high temperature suitable products,medium temperature suitable products,low temperature suitable products and high-low temperature suitable products.By solving the constructed models,the retailer's optimal price and optimal order quantity can be determined,and the impacts of the temperature related parameters,surplus and stock-out regret aversion parameters on the optimal price and optimal order quantity are analyzed.Second,the study on the joint pricing and ordering decision model for temperature sensitive products considering the disappointment aversion and elation seeking is conducted.To solve the joint pricing and ordering decision problem,we first give the general description of the problem.Then,the corresponding demand functions are given according to the demand characteristics of the four types of the temperature sensitive products.Furthermore,utility function for disappointment aversion and elation seeking is constructed.On the basis,the joint pricing and ordering decision models considering the disappointment aversion and elation seeking are constructed for high temperature suitable products,medium temperature suitable products,low temperature suitable products and high-low temperature suitable products.By solving the constructed models,the retailer 's optimal price and optimal order quantity can be determined,and the impacts of the temperature related parameters,disappointment aversion and elation seeking parameters on the optimal price and optimal order quantity are analyzed.Third,the study on the joint ordering and sales effort decision model for temperature sensitive products considering the surplus and stock-out regret aversion is conducted.To solve the joint ordering and sales effort decision problem,we first give the general description of the problem.Then,the corresponding demand functions are given according to the demand characteristics of the four types of the temperature sensitive products.Furthermore,regret aversion utility function is constructed.On the basis,the joint ordering and sales effort decision models considering the surplus and stock-out regret aversion are constructed for high temperature suitable products,medium temperature suitable products,low temperature suitable products and high-low temperature suitable products.By solving the constructed models,the retailer's optimal order quantity and optimal sales effort level can be determined,and the impacts of the temperature related parameters,disappointment aversion and elation seeking parameters on the optimal order quantity and optimal sales effort level are analyzed.Fourth,the study on the joint ordering and sales effort decision model for temperature sensitive products considering the disappointment aversion and elation seeking is conducted.To solve the joint ordering and sales effort decision problem,we first give the general description of the problem.Then,the corresponding demand functions are given according to the demand characteristics of the four types of the temperature 'sensitive products.Furthermore,utility function for disappointment aversion and elation seeking is constructed.On the basis,the joint ordering and sales,effort decision models considering the disappointment aversion and elation seeking are constructed for high temperature suitable products,medium temperature suitable products,low temperature suitable products and high-low temperature suitable products.By solving the constructed models,the retailer's optimal order quantity and optimal sales effort level can be determined,and the impacts of the temperature related parameters,disappointment aversion and elation seeking parameters on the optimal order quantity and optimal sales effort level are analyzed.The constructed models in the thesis can be used to solve the joint pricing and ordering decision problem for temperature sensitive products considering the surplus and stock-out regret aversion,the joint pricing and ordering decision problem for temperature sensitive products considering the disappointment aversion and elation seeking,the joint ordering and sales effort decision problem for temperature sensitive products considering the surplus and stock-out regret aversion and the joint ordering and sales effort decision problem for temperature sensitive products considering the disappointment aversion and elation seeking,respectively.The research work in this thesis provides a theoretical guidance framework and model framework to the study of newsvendor decision problems for temperature sensitive products considering the retailer's psychological behaviors,and also lays a theoretical foundation to the extension of the related study.