Lower bound for cost deviation in the newsboy model

dc.contributor.author	Khanra, Avijit
dc.contributor.author	Bandyopadhyay, Tathagata
dc.date.accessioned	2013-11-26T11:10:55Z
dc.date.available	2013-11-26T11:10:55Z
dc.date.copyright	2013-11
dc.date.issued	2013-11-26
dc.identifier.uri	http://hdl.handle.net/11718/11453
dc.description.abstract	Quality of decisions in inventory management problems depends on accuracy of param- eter estimates used for decision making. In many situations, error in decision making is unavoidable. In such cases, understanding sensitivity of objective function to sub-optimal decisions is necessary for better implementation of the model. We study sensitivity of expected demand-supply mismatch cost to sub-optimal ordering decisions in the newsboy model. We demonstrate through establishing a lower bound for cost deviation that the newsboy model is sensitive to error in ordering decisions. We generalize our conclusions to the discrete case too.	en_US
dc.language.iso	en	en_US
dc.relation.ispartofseries	;W.P. No. 2013-11-01
dc.subject	newsboy model	en_US
dc.subject	cost deviation	en_US
dc.title	Lower bound for cost deviation in the newsboy model	en_US
dc.type	Working Paper	en_US