New results on the newsvendor model and the multi-period inventory model with backordering

Ganesh Janakiraman, Seung Jae Park, Sridhar Seshadri, Qi Wu

Research output: Contribution to journalArticlepeer-review

Abstract

We analyze the newsvendor model and the multi-period inventory model, and provide some new results. For the newsvendor model, the best case newsvendor cost over all demand distributions with a given demand mean and variance is zero. In addition, under symmetric demand distributions, the newsvendor's costs remain the same when the holding and shortage costs are switched. For the multi-period inventory model with stochastic lead times, a dilation ordering of lead times implies an ordering of optimal costs.

Original languageEnglish (US)
Pages (from-to)373-376
Number of pages4
JournalOperations Research Letters
Volume41
Issue number4
DOIs
StatePublished - May 15 2013
Externally publishedYes

Keywords

  • Dilation order
  • Limited demand information
  • Multi-period inventory model
  • Newsvendor model

ASJC Scopus subject areas

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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