A new experimental model for profit maximization
Keywords:Behavioral approach, Inventory management, Newsvendor model, Prospect theory.
AbstractThe main purpose of this study is to present a comprehensive model in experimental researches, to estimate bias and subjective judgment emphasizing the prominent role of Newsvendor model in inventory and control management that can be generalized for other financial and management areas to modify classic models. In the new approach the real information is the base of measurement and according to it, the new approach considering subjective bias, is complied, then will be comparable to other types of models. The paper also explains the process of work thoroughly.
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