Although air transport contributes to globalization, airline emissions have attracted focus in green logistics. In this work, we investigate the airline-fleet assignment problem from a risk-averse perspective which uncertain demand and fuel price are considered simultaneously. The objective is maximise total profit fashion, i.e., weighted sum of expected conditional value at risk profit. An app...

Assigning products to and retrieving them from proper storage locations in a unit-load warehouse are crucial in minimizing its operating cost. The problem becomes intractable when the warehouse faces uncertain demand in a dynamic setting. We assume a factor-based demand model in which demand for each product in each period is affinely dependent on some uncertain factors. The distributions of th...

When demand is uncertain, manufacturers and retailers often have private information on future demand, and such information asymmetry impacts strategic interaction in distribution channels. In this paper, we investigate a channel consisting of a manufacturer and a downstream retailer facing a product market characterized by short product life, uncertain demand, and price rigidity. Assuming the ...

Oil prices remained relatively low but volatile in the 2015-17 period, largely due to declining and uncertain demand from China. This follows a prolonged decline from around $110 per barrel in June 2014 to below $30 in January 2016, due in large part to increased supply of shale oil in the US, which was spurred by the development of fracking technology. Most dynamic Cournot models focus on supp...

Traditionally, optimal preventive maintenance strategies are derived under deterministic and constant rate demand. Using ‘‘option’’, a powerful financial derivative tool to tackle optimization problem under uncertain environment, this paper presents an analytical, option-based cost model for scheduling joint production and preventive maintenance when demand is uncertain. The manufacturing enter...

Assigning products to and retrieving them from proper storage locations are crucial in minimizing the operating cost of a unit-load warehouse. The problem becomes intractable when the warehouse faces variable supply and uncertain demand in a multi-period setting. We assume a factor-based demand model in which demand for each product in each period is affinely dependent on some uncertain factors...

We consider a seller with uncertain demand for its product. If the demand curve were certain, then setting price and setting quantity would be equivalent ways to frame the seller’s problem of choosing a profit-maximizing point on its demand curve. With uncertain demand, these become distinct sales mechanisms. We distinguish between uncertainty about the market size and uncertainty about the con...