The Loss-Averse Newsvendor Problem With Random Supply

This article proposes two loss-averse newsvendor models with random supply.First-ly,under the assumption of supply combining the random capacity and yield,we give the unique optimal order quantity for the model with shortage cost and emergency order opportunity respectively,and discuss the impact of loss averse level and other system parameters on the optimal decision.Secondly,under the assumption of emergency supply capacity is random,we determine the equations satisfied by the optimal order quantity in case of single random emergency supply source and dual emergency supply sources(a supply source with random capacity,another source with unlimited capacity),and compare the influence of the parameters through comparative static analysis,specially,we investigate the loss-averse newsvendor's optimal decisions under all possible situations depending on the relationship between the emergency order cost and the sale price of product.