We study the data-integrated price-setting newsvendor problem in which the price-demand relationship is described by some parametric model with unknown parameters. We formulate the operational data analytics (ODA) framework that features a data-integration model and a validation model. The...

In recent years, omni-channel retailing has become immensely popular among both retailers and consumers. In this approach, retailers often leverage their brick-and-mortar stores to fulfill online orders, leading to the need for simultaneous decision-making on replenishment and inventory...

Stochastic gradient descent (SGD) has proven effective in solving many inventory control problems with demand learning. However, it often faces the pitfall of an infeasible target inventory level that is lower than the current inventory level. Several recent works (e.g., (Huh and...

We consider a joint control of pricing and production in a two-item inventory system, where each item can be produced by its dedicated source or a shared flexible source, under the lost-sales setting. The demands of the two items are correlated. Due to the complexity caused by the lost-sales...

We consider a periodic review inventory control problem of perishable goods with a fixed lifetime. Instead of considering either FIFO or LIFO issuance policy, we incorporate customers’ behavior in the retail setting using a mixture of FIFO and LIFO issuance policy. First, we characterize...

Based on the conditional value at risk criterion (CVaR), this paper constructed the additional-ordering newsvendor model considering the degree of risk aversion, the lost sale penalty cost and the limit of additional ordering, gave the satisfying conditions of optimal ordering quantity, and...

Inventory management relies on the economic order quantity (EOQ) and newsvendor models. While the newsvendor model has received much attention in the field of behavioral operations management (BOM), the EOQ problem remains largely untouched. This study presents one of the first empirical...

Inventory management for a new product is challenging due to the lack of historical data, and sales data cannot fully capture the actual demand as excess demand is usually unobservable. Meanwhile, demand-related features are available in the era of big data. We study how to determine the...

We consider the financial hedging problem of a firm whose operational cash flow from its inventory operation is affected by both price and demand uncertainties. We assume that selling prices and demand arrival process are governed by an exogenous continuous stochastic price process which is...

Problem definition: We study the procurement decisions of a trade agent: The agent chooses a bid (unit price to pay) to procure the goods available from seller(s). If the agent wins the bid, the supply is used to meet the buyer’s demand. Methodology/results: The trade agent’s single-period,...