@inproceedings{aec1131d62fd42af82ebf71b1e6f290d,
title = "The newsvendor model with futures trading",
abstract = "To mitigate the uncertainty of price and demand, we study a newsvendor model with futures trading. A profit maximization model and a utility maximization model have been established. Both optimal order quantities can be determined. We characterize the property of the optimal solutions for the two maximization problems and show that the retailer will prefer to purchase fewer products for the maximal utility than for the maximal profit. Extended models considering the salvage value of inventory are also studied. Numerical experiments validated the effectiveness of the models.",
keywords = "Futures Trading, Newsvendor Model, Profit, Utility",
author = "Yiming Chen and Shiji Song and Yuli Zhang",
note = "Publisher Copyright: {\textcopyright} 2016 IEEE.; 28th Chinese Control and Decision Conference, CCDC 2016 ; Conference date: 28-05-2016 Through 30-05-2016",
year = "2016",
month = aug,
day = "3",
doi = "10.1109/CCDC.2016.7532070",
language = "English",
series = "Proceedings of the 28th Chinese Control and Decision Conference, CCDC 2016",
publisher = "Institute of Electrical and Electronics Engineers Inc.",
pages = "5986--5990",
booktitle = "Proceedings of the 28th Chinese Control and Decision Conference, CCDC 2016",
address = "United States",
}