W study the classical problem of capacity and flexible technology selection with a newsvendor network model of resource portfolio investment. The resources differ by their level of flexibility, where “level-k flexibility” refers to the ability to process k different product types. We present an exact set-theoretic methodology to analyze newsvendor networks with multiple products and parallel re...

Previous research has shown that individuals systematically and persistently deviate from the profit maximizing quantity when solving a newsvendor problem. This research posits that Dual Process Theory provides an underlying cognitive explanation for why individuals deviate from optimality. More specifically, this research explores the relationship between individual performance and a Dual Proc...

We consider a multi-product risk-averse newsvendor under the law-invariant coherent measures of risk. We first establish several fundamental properties of the model regarding the convexity of the problem, the symmetry of the solution and the impact of risk aversion. Specifically, we show that for identical products with independent demands, increased risk aversion leads to decreased orders. For...

Chebyshev’s inequality provides an upper bound on the tail probability of a random variable based its mean and variance. While tight, has been criticized for only being attained by pathological distributions that abuse unboundedness underlying support are not considered realistic in many applications. We provide alternative tight lower bounds given bounded support, absolute deviation variable. ...

In this paper, we study a distribution-free multi-period newsvendor problem with advance purchase discount (APD). addition to the regular-order placed at beginning of each period, decision-maker (DM) can also commit an advance-order from upstream supplier and receive discounts. The goal DM is maximize total profits, in problem, only has access past demand data. To solve apply online method base...

The U.S. tax law taxes a multinational firm (MNF)’s global incomes at its home country tax rate. To avoid double taxation, it permits tax cross-crediting. Namely, the global firm can use excess foreign tax credits (FTCs) (the portion of foreign tax payments that exceed the home country tax liabilities) generated from a subsidiary located in a high-tax country to offset the tax liabilities of it...

This paper studies a buyback contract in the Stackelberg framework of a manufacturer (leader) selling to a price-setting, newsvendor retailer (follower). Using an analytical model that focuses on a multiplicative demand form, we generalize previous results and produce new structural insights. A novel transformation technique first enables us to establish the unimodality of the profit functions ...