Abstract
Newsboy problem, as the famous and basic model in stochastic programming, has numerous applications. Completely known probability distribution for random demand is a basic hypothesis in classical Newsboy model, but this is almost impossible to achieve in practice due to that the probability distribution is generally determined by some approximative methods such as statistical inferences and expertise. Newsboy problem with fuzzy probability distribution is studied in this paper, and two-stage stochastic linear programming model with recourse is set up. Improved L-shaped algorithm is designed to solve the problem. Numerical example demonstrates the feasibility and efficiency of the algorithm.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Abdelaziz, F.B., Masri, H.: Stochastic programming with fuzzy linear partial information on probability distribution. European Journal of Operational Research 162, 619–629 (2005)
Abdelaziz, F.B., Masri, H.: A compromise solution for the multiobjective stochastic linear programming under partial uncertainty. European Journal of Operational Research 202, 55–59 (2010)
Abdel-Maleka, L., Montanarib, R., Morales, L.C.: Exact, approximate, and generic iterative models for the multi-product Newsboy problem with budget constraint. International Journal of Production Economics 91, 189–198 (2004)
Birge, J.R., Louveaux, F.: Introduction to Stochastic Programming. Springer, New York (1997)
Chang, H.-C., Yao, J.-S., Ouyang, L.-Y.: Fuzzy mixture inventory model involving fuzzy random variable lead time demand and fuzzy total demand. European Journal of Operational Research 169, 65–80 (2006)
Khouja, B.: The single period (news-vendor) problem: literature review and suggestions for future research. Omega 27, 537–553 (1999)
Kofler, E.: Linear partial information with applications. Fuzzy Sets and Systems 118, 167–177 (2001)
Kwakernaak, H.: Fuzzy random variables - I: definition and theorems. Information Sciences 15, 1–29 (1978)
Liu, Y., Liu, B.: A class fuzzy random optimization: expected value models. Information Science 155, 89–102 (2003)
Porteus, E.L.: The newsvendor problem. International series in operations research and management science (2008), doi:10.1007/978-0-387-73699-0
Qin, Y., Wang, R., Vakharia, A.J., et al.: The newsvendor problem: Review and directions for future research. European Journal of Operational Research (2011), doi:10.1016/j.ejor.2010.11.024
Van Slyke, R.M., Wets, R.: L-shaped linear programs with applications to optimal control and stochastic programming. SIAM Journal of Applied Mathematics 17(4), 638–663 (1969)
Yu, C., Zhao, X., Peng, Y., et al.: Extended newsboy problem based on fuzzy random demand. Systems Engineering 153, 103–107 (2006) (in Chinese)
Zadeh, L.: Fuzzy sets. Information and Control 8, 338–353 (1965)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2011 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Ma, X., Yuan, T. (2011). Study of Newsboy Problem with Fuzzy Probability Distribution. In: Li, S., Wang, X., Okazaki, Y., Kawabe, J., Murofushi, T., Guan, L. (eds) Nonlinear Mathematics for Uncertainty and its Applications. Advances in Intelligent and Soft Computing, vol 100. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-22833-9_73
Download citation
DOI: https://doi.org/10.1007/978-3-642-22833-9_73
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-22832-2
Online ISBN: 978-3-642-22833-9
eBook Packages: EngineeringEngineering (R0)