Inventory Control with an Exponential Utility Criterion

Mokrane Bouakiz and Matthew J. Sobel
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Mokrane Bouakiz: AT&T, Basking Ridge, New Jersey
Matthew J. Sobel: State University of New York, Stony Brook, New York

Operations Research, 1992, vol. 40, issue 3, 603-608

Abstract: A base-stock policy is shown to be optimal when a dynamic version of the “news vendor” model is optimized with respect to an exponential utility criterion.

Keywords: dynamic programming/optimal control: risk-sensitive inventory model; inventory/production; uncertainty; stochastic: exponential utility; utility/preference: exponential utility in inventory model (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (44)

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