Newsvendor’s ordering behavior: Analysis on effects of ordering cost and gender
DOI:
Author:
Affiliation:

Clc Number:

F273.2

Fund Project:

  • Article
  • |
  • Figures
  • |
  • Metrics
  • |
  • Reference
  • |
  • Related
  • |
  • Cited by
  • |
  • Materials
  • |
  • Comments
    Abstract:

    This paper aims to give a new perspective and further discussion of the pull-to-center effect in the newsvendor model,using the mathematical model and the management experiment method. Firstly,from the viewpoint of the level behavior of the order quantity,the dual-balance strategy where the total overage cost is equal to the total underage cost can well explain the pull-to-center effect. What’s more,operations cost induced by the dual balance strategy is no more than twice that induced by the optimal strategy. Secondly,from the viewpoint of the adjustment behavior of the order quantity,two findings are derived. One is that the overage has less ( more) effect on the order quantity than the underage order in the high- ( low-) marginal profit situation. Hence,enterprises can nudge decision makers to pay more attention to the loss of underage ( overage) order in high-( low-) marginal profit settings to ease the pull-to-center effect. The other is that compared with women,males’order quantities are less affected by underage ( overage) order,which shows males’self-definition and decision-making behavior are not sensitive to external factors . Therefore,enterprises are advised to pay attention to gender differences in order behaviors.

    Reference
    Related
    Cited by
Get Citation
Share
Article Metrics
  • Abstract:
  • PDF:
  • HTML:
  • Cited by:
History
  • Received:
  • Revised:
  • Adopted:
  • Online: October 25,2021
  • Published:
You are the th visitor Address:Room 908, Building A, 25th Teaching Building, Tianjin University, 92 Weijin Road, Nankai District, Tianjin Postcode:300072
Telephone:022-27403197 Email:jmsc@tju.edu.cn