Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)

Ordering Policy for Perishable Commodity Using Online Algorithm with Risk-Reward

Authors
BIN LIU1, WENTIAN CUI, CHUNLIN XIN
1School of Management, Xian Jiaotong University
Corresponding Author
BIN LIU
Available Online October 2007.
DOI
https://doi.org/10.2991/iske.2007.109How to use a DOI?
Keywords
perishable commodity; online algorithm with risk-reward; competitive ratio
Abstract

This paper studied an ordering problem under non-stationary setting. It used the online algorithm with risk-reward that is a combination of probability analysis and classical online algorithm. We obtained an online risk base stock policy whose risk was restricted to a tolerance level by designing online strategy based on forecasting. The strategy gain reward if forecasting successful, the risk is acceptable if unsuccessful. The decision-makers can design online strategy to improve performance in the light of his risk tolerance level.

Copyright
© 2007, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)
Series
Advances in Intelligent Systems Research
Publication Date
October 2007
ISBN
978-90-78677-04-8
ISSN
1951-6851
DOI
https://doi.org/10.2991/iske.2007.109How to use a DOI?
Copyright
© 2007, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - BIN LIU
AU  - WENTIAN CUI
AU  - CHUNLIN XIN
PY  - 2007/10
DA  - 2007/10
TI  - Ordering Policy for Perishable Commodity Using Online Algorithm with Risk-Reward
BT  - Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)
PB  - Atlantis Press
SP  - 636
EP  - 640
SN  - 1951-6851
UR  - https://doi.org/10.2991/iske.2007.109
DO  - https://doi.org/10.2991/iske.2007.109
ID  - LIU2007/10
ER  -