Proceedings of the 2025 4th International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2025)

<Previous Article In Volume
Next Article In Volume>

The Impact of Lead Time Uncertainty on the “Pull to Center” Effect in the Newsvendor Problem: An Experimental Study

Authors
Jiaqi Wang1, Weiwei Han1, *
1Beijing University of Posts and Telecommunications, Beijing, 1000000, China
*Corresponding author. Email: hanweiw@bupt.edu.cn
Corresponding Author
Weiwei Han
Available Online 31 May 2025.
DOI
10.2991/978-94-6463-742-7_23How to use a DOI?
Keywords
Newsvendor problem; Lead time; “Pull to Center” effect
Abstract

In the context of accelerated economic globalization, retailers face heightened lead time uncertainty, complicating newsvendor decisions. This paper focuses on the newsvendor problem and deeply explores the impact of lead time uncertainty on the “Pull to Center” effect. By modeling lead time with a normal distribution and conducting controlled experiments under varying arrival probabilities, lead time distributions, and profit conditions, we demonstrate that the “Pull to Center” effect persists across all scenarios. This paper further studies the asymmetry of the “Pull to Center” and finds that subjects exhibited a stronger “Pull to Center” effect under conditions of low arrival probability and high profit. Moreover, when the mean value is relatively low, the larger the standard deviation, the stronger the effect; however, this phenomenon is not observed when the mean value is relatively high. These findings suggest that enterprises should develop targeted strategies to assist in better coping with challenges brought by lead time uncertainty.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2025 4th International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2025)
Series
Advances in Intelligent Systems Research
Publication Date
31 May 2025
ISBN
978-94-6463-742-7
ISSN
1951-6851
DOI
10.2991/978-94-6463-742-7_23How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jiaqi Wang
AU  - Weiwei Han
PY  - 2025
DA  - 2025/05/31
TI  - The Impact of Lead Time Uncertainty on the “Pull to Center” Effect in the Newsvendor Problem: An Experimental Study
BT  - Proceedings of the 2025 4th International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2025)
PB  - Atlantis Press
SP  - 204
EP  - 210
SN  - 1951-6851
UR  - https://doi.org/10.2991/978-94-6463-742-7_23
DO  - 10.2991/978-94-6463-742-7_23
ID  - Wang2025
ER  -