Two types of capacitated risk-averse newsvendor models

This paper considers a newsvendor model where the retailer is risk averse and his capacity is constrained.Two risk measures are considered: the downside risk measure and CVaR risk measure.Under the two measures,the optimal order quantities are obtained,and the impact of risk-averse degrees on the retailer's decision is analyzed.This model further extands the classical newdvendor models and it is more interesting and meaningful to consider the capacitated constraint in practice.