Empirical Newsvendor Decisions Under a Service Level Contract

Anna-Lena Sachs
Additional contact information
Anna-Lena Sachs: University of Cologne

Chapter Chapter 6 in Retail Analytics, 2015, pp 79-101 from Springer

Abstract: Abstract We analyze the order decisions of a manufacturer who supplies several retail stores with bakery products in a newsvendor context. According to a service level contract between the manufacturer and the retailer, the manufacturer has to achieve an in-stock service level measured over multiple products. We derive the optimal inventory policy for an aggregate service level contract and compare the optimal solution to the decisions made by the manufacturer. Further, we address the question whether the results of experimental studies from the laboratory can be transferred to real-world decisions. Our findings indicate that real decision makers show similar decision biases as students in laboratory environments.

Keywords: Decision Maker; Service Level; Order Quantity; External Product; Service Level Constraint (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-319-13305-8_6

Ordering information: This item can be ordered from
http://www.springer.com/9783319133058

DOI: 10.1007/978-3-319-13305-8_6

Access Statistics for this chapter

More chapters in Lecture Notes in Economics and Mathematical Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().