We study a coordinated maintenance problem for multi-turbine offshore wind-farms. The deterioration of the turbines follows Poisson process and optimal order quantity single wind-farm, as well coalition wind-farms, is obtained using analogy with risk-averse newsvendor model considering conditional value at risk (CVaR) criterion. apply theory robust dynamic coalitional games to design stable all...

The dynamic pricing problem concerns the determination of selling prices over time for a product whose demand is random and whose supply is fixed. We approach this problem in a novel way by formulating a dynamic optimization model in which the demand function is iso-elastic but the random demand process is quite general. Ultimately, what we find is a strong parallel between the dynamic pricing ...

This paper considers a one-warehouse multi-retailer inventory system that faces discrete stochastic demand of the customers. Under the so-called balance assumption (also known as the allocation assumption), base stock policies are optimal. Our main contribution is to show that the optimal base stock levels satisfy newsvendor characterizations, which are in terms of inequalities, and to extend t...

Abstract We discuss stochastic optimization problems under distributional ambiguity. The uncertainty is captured by considering an entire family of distributions. Because we assume the existence data, can consider confidence regions for different estimators parameters Based on definition appropriate estimator in interior resulting region, propose a new data-driven problem. This approach applies...

December 2008 Abstract Previous experimental work has shown that individuals make suboptimal decisions in newsvendor problems (e.g. Schweitzer and Cachon 2000). We present a theoretical (behavioral) model of overconfident newsvendors that is consistent with these observed results. We show that overconfident newsvendors place suboptimal orders (which can be either higher or lower than optimal qu...

We consider a repeated newsvendor problem where the inventory manager has no prior information about thedemand, and can access only censored/sales data. In analogy tomultiarmed bandit problems, the manager needs to simultaneously “explore” and “exploit” with her inventory decisions, in order to minimize the cumulative cost. We make no probabilistic assumptions—importantly, independence or time ...

We examine cooperative games in supply-chain management termed Inventory Games. Supply-chain management has non-cooperative and cooperative interactions between the participating players. We provide a concise survey of cooperative inventory games in the form of extensions on two basic problems. For deterministic games, Economic Order Quantity-like policies with joint replenishment are of primar...

We show that when a one-supplier/one-newsvendor supply chain is capacity-constrained, wholesale price contracts have some flexibility in allocating the channel-optimal profit. We analyze how this flexibility changes as we change the supply chain's capacity constraint and market demand. We also explore the allocation that is achieved in equilibrium in a newsvendor procurement game. Finally, we g...