Optimal Order Quantity for the Mean-Variance Newsvendor Problem with Stockout

  • Akram El-TannirEmail author
Conference paper
Part of the Lecture Notes in Management and Industrial Engineering book series (LNMIE)


This paper extends the formula that derives the optimal order quantity for the risk-neutral newsvendor under stockout. Its objective is to maximize the mean-variance risk-averse profit utility function under the general demand probability distribution. The obtained formula is applied for the cases of the Uniform, Normal, and Exponential distributions. The obtained results confirmed earlier findings that the optimal order quantity for the risk-averse newsvendor problem with stockout using the mean-variance utility can either be less than or greater than the optimal quantity of the risk-neutral case.


Supply chain Newsvendor problem Mean-variance utility Risk-averse 


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© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Department of Industrial Engineering and Engineering Management, Faculty of EngineeringBeirut Arab UniversityBeirutLebanon

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