Research On Models For The Bilevel Newsboy Problem With CVaR Criterion

Newsboy problem is a classical inventory model of supply chain management, and it's also a single period inventory problem .It is to find the order quantity which maximizes the profit of retailer in the random market. Along with newsboy problem development, a lot of scholars study it.Firstly, this paper introduces the classical newsboy problem. With its attention by many scholars, the expansions of newsboy problem have been proposed. We give a summary of these expansions, and elaborate an important model of the expansions -tow-echelon newsboy problem.Secondly, this paper elaborates the newsboy problem with risk aversion. Based three of the major risk measurement criteria, the newsboy problem in its measurement of the development of related models are introduced. As a widely used risk measurement criteria, Conditional Value-at-Risk has a good calculating character and application. For this reason, we elaborate the research situation of newsboy problem with CVaR criteria specially.Finally, combined with CVaR and tow-echelon newsboy problem, two models for tow-echelon newsboy problem with CVaR are studied when there is no lost sale penalty cost. In one model, the upper level is supplier with risk neutral and the lower level is retailer with risk aversion. In the other model, the supplier and retailer are all risk averse. Considering the random market demand is uncertain and some products can not be stored, decision-makers who want to gain the greatest profits under the lowest risk are risk averse. We design corresponding algorithms and give two examples for the models. According to the analyzing results of concrete examples, it shows that the suppliers can confirm an optimum price and the retailers can make the best decision for the purchasing amount to maximize their profit in the models.