A NPV-based Risk-averse Inventory Model with Price Discount
Jihui Zhang · Journal of Qingdao University · 2008
The method of the maximum expected utility of net present value is used to resolve the decision-maker's risk attitude and the riskfree return at the end of decision horizon because of the variation and complexity of the economic environment.Inventory model of a risk-averse decision-maker is established and the optimal inventory level is given.The result shows that net present value method is a possible way for multi-period stochastic inventory decision problems.