Ordering Policy for Perishable Commodity Using Online Algorithm with Risk-Reward
BIN LIU1, WENTIAN CUI, CHUNLIN XIN
1School of Management, Xian Jiaotong University
Available Online October 2007.
- 10.2991/iske.2007.109How to use a DOI?
- perishable commodity; online algorithm with risk-reward; competitive ratio
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.
- © 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 - 10.2991/iske.2007.109 ID - LIU2007/10 ER -