Ordering Policy for Perishable Commodity Using Online Algorithm with Risk-Reward
Bin Liu, Wentian Cui, Chunlin Xin · 2007
This paper studied an ordering problem under nonstationary 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.