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Optimal option purchase decision of a loss-averse retailer under emergent replenishment

机译:最佳选择在紧急补货下亏损厌恶零售商的选择

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This paper studies the optimal option purchase of a loss-averse retailer under emergent replenishment. It is assumed that all or part of the excess demands in a stock-out situation can be replenished, and the loss-averse retailer's optimal option purchase quantity is investigated. It is found that the loss-averse retailer should not purchase options and only needs to replenish the inventory under certain conditions. When maximizing the expected utility without shortage cost, the loss-averse retailer's optimal option purchase quantity is decreasing in the loss aversion coefficient. To maximise the expected utility with shortage cost, a larger shortage cost implies a bigger option purchase quantity. If the shortage cost exists, there will be a loss on the expected profit and utility for the loss-averse retailer who selects an optimal option purchase quantity without shortage cost. Given the optimal option purchase quantity, it is proven that the loss-averse retailer's expected profit is decreasing in the loss aversion coefficient. Therefore the retailer should choose a proper loss aversion preference to balance between the two objectives of profit maximization and loss aversion preference. As a result of these findings, some management insights are recommended to the loss-averse retailer in selecting the option purchase quantity.
机译:本文研究了在紧急补充下购买亏损厌恶零售商的最佳选择。假设可以补充储蓄情况的全部或部分过度要求,并调查了损失 - 零售商的最佳选择购买量。有人发现,亏损 - 厌购者不应购买选项,只需要在某些条件下补充库存。在没有短缺成本的情况下最大化预期效用,丢失厌恶零售商的最佳选择购买量在损失厌恶系数下降。为了最大化具有短缺成本的预期效用,更大的短缺成本意味着更大的选择购买量。如果存在短缺成本,则对未缺乏费用的最佳期权购买数量的损失的零售商将损失预期的利润和效用。鉴于最佳选择购买数量,证明损失厌购人的预期利润在损失厌恶系数下降。因此,零售商应该选择适当的损失厌恶偏好,以平衡利润最大化和损失厌恶偏好。由于这些调查结果,建议在选择期权购买量方面向亏损 - 厌恶零售商建议一些管理见解。

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