Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand
In this paper, we study the optimal strategies for a newsvendor system with joint reference effect, carbon emissions-sensitive random demand, and strategic customers’ behavior. The newsvendor’s decisions are to determine the selling price, production quantity, and carbon emissions under exogenous an...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2018/2452406 |
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| _version_ | 1832545329640112128 |
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| author | Baojun Zhang Shaojian Qu Panpan Li Ripeng Huang |
| author_facet | Baojun Zhang Shaojian Qu Panpan Li Ripeng Huang |
| author_sort | Baojun Zhang |
| collection | DOAJ |
| description | In this paper, we study the optimal strategies for a newsvendor system with joint reference effect, carbon emissions-sensitive random demand, and strategic customers’ behavior. The newsvendor’s decisions are to determine the selling price, production quantity, and carbon emissions under exogenous and endogenous price cases, respectively. We also explore how the loss aversions affect the newsvendor’s decisions. It is shown that the newsvendor has a uniquely optimal policy. The influence of the reference effect makes the final decisions deviate from the optimal solutions of the classical model. Furthermore, the sensitivity analysis indicates that the loss aversions have a great impact on the newsvendor’s decisions. Finally, more managerial implications are derived by numerical simulations. |
| format | Article |
| id | doaj-art-b9d55667a0bd48c09db1e888b0d312c5 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-b9d55667a0bd48c09db1e888b0d312c52025-02-03T07:26:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2018-01-01201810.1155/2018/24524062452406Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random DemandBaojun Zhang0Shaojian Qu1Panpan Li2Ripeng Huang3Business School, University of Shanghai for Science and Technology, Shanghai, ChinaBusiness School, University of Shanghai for Science and Technology, Shanghai, ChinaBusiness School, University of Shanghai for Science and Technology, Shanghai, ChinaBusiness School, University of Shanghai for Science and Technology, Shanghai, ChinaIn this paper, we study the optimal strategies for a newsvendor system with joint reference effect, carbon emissions-sensitive random demand, and strategic customers’ behavior. The newsvendor’s decisions are to determine the selling price, production quantity, and carbon emissions under exogenous and endogenous price cases, respectively. We also explore how the loss aversions affect the newsvendor’s decisions. It is shown that the newsvendor has a uniquely optimal policy. The influence of the reference effect makes the final decisions deviate from the optimal solutions of the classical model. Furthermore, the sensitivity analysis indicates that the loss aversions have a great impact on the newsvendor’s decisions. Finally, more managerial implications are derived by numerical simulations.http://dx.doi.org/10.1155/2018/2452406 |
| spellingShingle | Baojun Zhang Shaojian Qu Panpan Li Ripeng Huang Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand Discrete Dynamics in Nature and Society |
| title | Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand |
| title_full | Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand |
| title_fullStr | Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand |
| title_full_unstemmed | Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand |
| title_short | Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand |
| title_sort | optimal strategies for manufacturers with the reference effect under carbon emissions sensitive random demand |
| url | http://dx.doi.org/10.1155/2018/2452406 |
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