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Journal of Open Innovation: Technology, Market, and Complexity is published by MDPI from Volume 4 Issue 2 (2018). Previous articles were published by another publisher in Open Access under a CC-BY (or CC-BY-NC-ND) licence, and they are hosted by MDPI on mdpi.com as a courtesy and upon agreement with Springer.
Article

Comparing validity of risk measures on newsvendor models in open innovation perspective

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Division of Business Administration, Yonsei University, Wonju 26493, Republic of Korea
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Department of Business Administration, Sangji University, Wonju 26339, Republic of Korea
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Department of Business Administration and Accounting, Hanbat National University, Daejeon 34158, Republic of Korea
*
Author to whom correspondence should be addressed.
J. Open Innov. Technol. Mark. Complex. 2018, 4(1), 1; https://doi.org/10.1186/s40852-017-0078-8
Received: 30 September 2017 / Accepted: 30 November 2017 / Published: 3 January 2018
In the era of Industry 4.0, firms are facing with greater uncertainty. Accordingly, it is important to select quality risk measures to analyze newsvendor problems under risk. Then, open innovation can be a good remedial option for such risk-averse newsvendors because open innovation can offset the profit losses from risk aversion by sharing revenues in supply chains. To find such risk measures in newsvendor problems, we review various risk measures of risk-averse inventory models and existing articles in inventory management literature. Then we provide a logical reasoning and axiomatic framework to evaluate validity of each risk measure in newsvendor problems - consistency to the four axioms in coherent risk measures. In this framework, the underlying assumptions and managerial insights to the newsvendor problems are examined for each risk measure. Consequently, exponential utility function and coherent measures of risk are selected as two plausible risk measures to analyze multi-product risk-averse newsvendor models.
MDPI and ACS Style

Choi, S.; Park, K.; Shim, S.-O. Comparing validity of risk measures on newsvendor models in open innovation perspective. J. Open Innov. Technol. Mark. Complex. 2018, 4, 1. https://doi.org/10.1186/s40852-017-0078-8

AMA Style

Choi S, Park K, Shim S-O. Comparing validity of risk measures on newsvendor models in open innovation perspective. Journal of Open Innovation: Technology, Market, and Complexity. 2018; 4(1):1. https://doi.org/10.1186/s40852-017-0078-8

Chicago/Turabian Style

Choi, Sungyong, KyungBae Park, and Sang-Oh Shim. 2018. "Comparing validity of risk measures on newsvendor models in open innovation perspective" Journal of Open Innovation: Technology, Market, and Complexity 4, no. 1: 1. https://doi.org/10.1186/s40852-017-0078-8

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