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Representation of Loss Aversion and Impatience Concerning Time Utility in Supply Chains

  • Péter Földesi
  • János Botzheim
  • Edit Süle
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 10)

Abstract

The paper deals with the investigation of the critical time factor of supply chain. The literature review gives a background to understand and handle the reasons and consequences of the growing importance of time, and the phenomenon of time inconsistency. By using utility functions to represent the value of various delivery-times for the different participants in the supply chain, including the final customers, it is shown that the behaviour and willingness of payment of time-sensitive and non time-sensitive consumers are different for varying lead times. Longer lead times not only generate less utility but impatience influences the decision makers, that is the time elasticity is not constant but it is function of time. For optimization soft computing techniques (particle swarm optimization in this paper) can be efficiently applied.

Keywords

Supply Chain Particle Swarm Optimization Lead Time Customer Satisfaction Loss Aversion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Péter Földesi
    • 1
  • János Botzheim
    • 2
  • Edit Süle
    • 3
  1. 1.Department of Logistics and ForwardingSzéchenyi István UniversityGyőrHungary
  2. 2.Department of AutomationSzéchenyi István UniversityGyőrHungary
  3. 3.Department of Marketing and ManagementSzéchenyi István UniversityGyőrHungary

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