Research Article

On the Preorder Strategy for Loss-Averse Newsvendor Model under CVaR Measure

Algorithm 1

The algorithm to compute the optimal preordering time and the optimal preorder quantity.
Step 1. Input parameters .
Step 2. Define function
and solve equation to obtain . If or , set .
Step 3. If , then set , else set , goto next step.
Step 4. Compute
Step 5. Output , .