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2085. Decision-making of Liquor Retailer based on Modified Portfolio Theory
Invited abstract in session MD-51: Portfolio risk management, stream Risk management in finance.
Monday, 14:30-16:00Room: M5 (building: 101)
Authors (first author is the speaker)
| 1. | Xiaotong Sang
|
| FINANCE, VSB-Technical University of Ostrava |
Abstract
A complete retail supply chain consists of suppliers, retailers, and customers. Retailers generally bear greater risks, such as how to choose suppliers and how many suppliers to choose. Portfolio theory seeks to optimize portfolio structure and maximize returns. This project is based on the perspective of the retailer and applies the Portfolio Theory to the decision-making of the retailer. The aim of this project is to select an order structure and financing method for the retailer that match the expected revenue based on mean-variance theory. For this purpose, this project collected data on a liquor retailer, basically classifying suppliers into two categories, which include five products, and finding out how the retailer should build orders to achieve the maximum expected revenue. In addition, considering the situation that the retailer has inventories and has difficulty financing, this project uses the classical newsvendor model to optimize the management of the inventory of the retailer and gives financing suggestions based on the results. Conclusively, find out the supplier portfolio under the modified portfolio theory and give private suggestions.
Keywords
- Decision Analysis
- Supply Chain Management
- Inventory
Status: accepted
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