This study deals with joint decisions on pricing and production lot-sizing in a closed-loop supply chain consisting of manufacturing and remanufacturing operations. This study emphasizes the economic analysis of this hybrid system with substitution between the new and the remanufactured versions of the same product. We develop analytical models under a newsvendor framework bearing the following...

This paper examines a dynamic version of the newsboy problem in which a decision maker must maintain service capacity from several sources to attempt to meet uncertain demand for a perishable good, subject to the cost of providing sufficient capacity, and penalties for not meeting demand. A complete characterization of the optimal outcome is obtained when normalized demand is modeled as Brownia...

D the payment scheme have an effect on inventory decisions in the newsvendor problem? Keeping the net profit structure constant, we examine three payment schemes that can be interpreted as the newsvendor’s order being financed by the newsvendor herself (scheme O), by the supplier through delayed order payment (scheme S), and by the customer through advanced revenue (scheme C). In a laboratory s...

In the newsvendor problem a decision maker orders inventory before a one period selling season with stochastic demand. If too much is ordered, stock is left over at the end of the period, whereas if too little is ordered, sales are lost. The expected profit-maximizing order quantity is well known, but little is known about how managers actually make these decisions. We describe two experiments ...

The newsvendor model is perhaps the most widely analyzed model in inventory management. In this singleperiod model, the only source of randomness is the demand during the period and one tries to determine the optimal order quantity in view of various cost factors. We consider an extention where supply is also random so that the quantity ordered is not necessarily received in full at the beginni...

We introduce a measure of elasticity of stochastic demand, called the elasticity of the lost-sales rate, which offers a unifying perspective on the well-known newsvendor with pricing problem. This new concept provides a framework to characterize structural results for coordinated and uncoordinated pricing and inventory strategies. Concavity and submodularity of the profit function, as well as s...

T paper provides a model of the competitive newsvendor problem in which there is price competition following the inventory decisions. Using the biform game formalism of Brandenburger and Stuart (2004), the price competition is modeled by considering the core of the induced cooperative game. Such an analysis allows price competition to be modeled without a priori assumptions about price-setting ...

This thesis studies the performance of a decision based model selection (DBMS) method for newsvendor problems. In the newsvendor problem an optimal stock quantity has to be determined based on the distribution of the demand. The DBMS method distinguishes itself from conventional model selection methods by selecting models based on the performance of its decision, rather than on the goodness-of-...

Traditional stochastic inventory models assume full knowledge of the demand distribution. However, in practice, it is often difficult to completely characterize the demand distribution, especially with little or outdated historical data. In these uncertain environments, good inventory management has to be robust, i.e., perform well under most demand scenarios. In this paper, we study the newsve...

We present a version of the newsvendor problem where one has n observations of p features as well as past demand. We consider both " big data " (p/n = O(1)) as well as small data (p/n = o(1)). For small data, we provide a linear programming machine learning algorithm that yields an asymptotically optimal order quantity. We also derive a generalization bound based on algorithmic stability, which...