Traditional approaches in inventory control first estimate the demand distribution among a predefined family of distributions based on data fitting of historical demand observations, and then optimize the inventory control using the estimated distributions. These approaches often lead to fragile solutions whenever the preselected family of distributions was inadequate. In this work we propose a...

The problem of adaptive stochastic airline seat inventory control lies at the heart of airline revenue management. This problem concerns the allocation of the finite seat inventory to the stochastic customer demand that occurs over time before the flight is scheduled to depart. The objective is to find the right combination of customers of various fare classes on the flight such that revenue is...

In an attempt to reduce cost while maintaining good customer service, some of the leading manufacturers in the computer industry are delaying product differentiation (by exploiting component commonality) while managing broader product lines. In an environment where demands are stochastic, it seems a good strategy to store inventory in the form of semi-finished products (vanilla boxes) that can ...