The single-period problem (SPP), also known as the newsboy or newsvendor problem, is to "nd the order quantity which maximizes the expected pro"t in a single-period probabilistic demand framework. Previous extensions to the SPP include, in separate models, the simultaneous determination of the optimal price and quantity when demand is price-dependent, and the determination of the optimal order ...

We report preliminary results on stochastic optimization with limited distributional information. Lack of complete distribution calls for stochastically robust models that, after exploiting available limited or partial information, offer risk-shielded solutions, i.e., solutions that are insensitive to all possible distributions of random variables. We focus on the well-known newsvendor problem ...

Two risk control mechanisms, namely, cash deposit, and loan limits based on retained profit or maximum expected guarantor profit, are developed for capital-constrained newsvendor financing. Results show that with a large initial capital mortgage asset, the reduces order quantity to avoid bankruptcy risk. Under mechanism gains greater when has low capital. Setting limit is thus an effective news...

W consider a call center model with m input flows and r pools of agents; the m-vector of instantaneous arrival rates is allowed to be time dependent and to vary stochastically. Seeking to optimize the trade-off between personnel costs and abandonment penalties, we develop and illustrate a practical method for sizing the r agent pools. Using stochastic fluid models, this method reduces the staff...

We address the problem of computing optimal policies for a finite-horizon newsvendor model with censored demand and perishable inventory. By combining an earlyperiod optimization based grid search with easily computable late-period bounds, we are able to handle a broad range of demand distributions and prior specifications. The grid-search is performed on a discretization of the demand-decision...

Scarf’s min-max order formula for the distribution-free risk-neutral newsvendor problem is a classical result in the field of inventory management. The min-max order formula provides, in closed-form, the order quantity that maximizes the worst-case expected profit associated with the demand of a single product when only the mean and variance of the product’s demand distribution, rather than the...

In this paper we consider the Newsvendor Problem. Intuition may lead to the hypothesis that in this stochastic inventory problem a higher demand variability results in larger variances and in higher costs. In a recent paper, Song (1994a) has proved that the intuition is correct for many demand distributions that are commonly used in practice, such as for the Normal distribution function. Howeve...

Suppliers' selection problem has always been daunting challenges in the Newsvendor problem. Furthermore, since failures supplier's products cause irreparable damage to retailer, it is necessary consider reliability of ordering suppliers' products. This paper develops model by considering impactful criteria supplier and product so that total cost chain minimized a multi-product multi-period with...

In this paper, we consider a Kullback-Leibler divergence constrained distributionally robust optimization model. This model considers an ambiguity set that consists of all distributions whose to empirical distribution is bounded. Utilizing the fact measure has exponential cone representation, obtain counterpart problem as dual program under mild assumptions on underlying problem. The resulting ...

• An inventory problem where random demand depends on certain observable features in addition to an unobservable feature is studied. A estimation has addressed first solve optimization problem. We propose integrated and approach using a deep learning network. Numerical examples show that the performs better than other approaches environments. consider single-period with both directly impact dis...