Abstract
This chapter deals with a generalization of the single-period newsvendor problem. We consider a setting in which a decision maker at a single stocking point must determine the stock level for a single product under uncertain demand. In addition to determining the item’s stock level, the decision maker must select a subset from a set of individual demands, each of which is uncertain and follows a particular probability distribution. Assuming normally distributed and independent demand streams results in a class of problems that are strikingly similar to the problems considered in the previous chapter, although the underlying model assumptions are quite different.
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References
Bakal I, Geunes J, Romeijn H (2008) Market Selection Decisions for Inventory Models with Price-Sensitive Demand. Journal of Global Optimization 41(4):633–657
Romeijn H, Geunes J, Taaffe K (2007) Solution Methods for a Class of Nonlinear, Non-Separable Knapsack Problems. Operations Research Letters 35(2):172–180
Taaffe K, Geunes J, Romeijn H (2008) Target Market Selection with Demand Uncertainty: The Selective Newsvendor Problem. European Journal of Operational Research 189(3):987–1003
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© 2012 Joseph Geunes
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Geunes, J. (2012). Single-Period Stochastic Inventory Planning with Demand Selection. In: Demand Flexibility in Supply Chain Planning. SpringerBriefs in Optimization. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-9347-2_4
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DOI: https://doi.org/10.1007/978-1-4419-9347-2_4
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4419-9346-5
Online ISBN: 978-1-4419-9347-2
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