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The multi-item newsboy problem is used to determine the value of two types of incomplete information, global information and product-mix information. It is shown that this value depends on the number of products, the existence of a budget restriction and the degree of substitutability. ? 2002 Elsevier Science Ltd. All rights reserved.

This study considers a supply chain that consists of n retailers, each of them facing a newsvendor problem, m warehouses and a supplier. The retailers are supplied with a single product via some warehouses. In these warehouses, the ordered amounts of goods of these retailers become available after some lead time. At the time that the goods arrive at the warehouses, demand realizations are known...

We consider a single stage periodic-review inventory system with backorders and dual sourcing: Replenishment can occur through a regular channel and/or a more expensive expedited channel with a smaller lead time. Globally optimal policies for these problems are in general highly complex; we therefore introduce a simple class of heuristic base stock policies. We call our class of policies the si...

There exist many inventory control studies that consider either continuous review & continuous ordering, or periodic review & periodic ordering. Mixtures of the two are hardly ever studied. However, the model with periodic review and continuous ordering is highly relevant in practice, as information on the actual inventory level is not always up to date while making ordering decisions. This pap...

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...

Many aspects of the classical price-setting newsvendor problem have been studied in the literature and most of the results pertain to the case where the price-demand relationship and demand distribution are explicitly provided. However, in practice, one needs to model and estimate these from historical sales data. Furthermore, many other drivers besides price must be included in the demand resp...

We propose a new way to derive tractable robust counterparts of a linear program by using the theory of Beck and Ben-Tal (2009) on the duality between the robust (“pessimistic”) primal problem and its “optimistic” dual. First, we obtain a new convex reformulation of the dual problem of a robust linear program, and then show how to construct the primal robust solution from the dual optimal solut...

Scenarios are indispensable ingredients for the numerical solution of stochastic optimization problems. Earlier approaches for optimal scenario generation and reduction are based on stability arguments involving distances of probability measures. In this paper we review those ideas and suggest to make use of stability estimates based on distances containing minimal information, i.e., on data ap...

Procurement Auctions with Capacity Reservation It frequently happens that a supplier needs to invest in building capacity prior supplying product. Then the buyer will need reserve from suppliers and pay for this advance of knowing final demand. “Capacity Games Supply Function Competition” by Edward Anderson, Bo Chen, Lusheng Shao studies very general version problem, which both production costs...