Optimal Robust Ordering Quantity for a New Product Under Environmental Constraints

Abstract

Rapid new product introduction is an effective method for firms to capture market share. Considering the growing concerns of environmental threats, firms are under intense pressure to measure their impacts on the environment. Before launching a new product, a firm should make the appropriate decision regarding the order quantity with incomplete information to achieve the goals of both profit maximization and environmental threat minimization simultaneously. In this paper, distribution-free news vendor models with the environmental constraints are proposed to obtain efficient order decisions. The models are formulated based on the absolute minimax regret criterion. Based on the moment bound p..